(ai) The diagram above shows the effects of the introduction of a subsidy on the production of maize. Study the diagram and answer the questions that follow.

Identify the curves labelled X,Y,Z

(aii)  The diagram below shows the effects of the introduction of a subsidy on the production of maize. Study the diagram and answer the questions that follow.
     Open photo
State the direction of change in price and quantity with the introduction of subsidy

(bi) The diagram below shows the effects of the introduction of a subsidy on the production of maize. Study the diagram and answer the questions that follow.
     Open photo
Calculate the total revenue of the producers before the introduction of subsidy

(bii) The diagram below shows the effects of the introduction of a subsidy on the production of maize. Study the diagram and answer the questions that follow.
     Open photo
Calculate the total revenue of the producers after the introduction of subsidy

(c) The diagram below shows the effects of the introduction of a subsidy on the production of maize. Study the diagram and answer the questions that follow.
     Open photo
Calculate the percentage increase or decrease in total revenue of the producers with the introduction of subsidy

(d) The diagram below shows the effects of the introduction of a subsidy on the production of maize. Study the diagram and answer the questions that follow.
     Open photo
If the quantity demanded of maize increases from 20 to 40 bags as a result of a fall in price from $15 to $10, calculate the price elasticity of demand.

(e)  The diagram below shows the effects of the introduction of a subsidy on the production of maize. Study the diagram and answer the questions that follow.
      Open photo
State the type of elasticity of demand in 2(d).

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Discussions (3)

Kingkangchan
3 years ago

My school no images can be seen

Caleb_xtreme
2 years ago

your solving for d is wrong. Elasticity of demand is equal to change in qty demanded divided by change in price. If u apply that here, u will get 2

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