Given the demand function for commodity X Qd = 12 - 2P where Qd is the quantity demanded and P the price of the commodity.
| P | 6 | 5 | 4 | 3 | 2 | 1 | 0 |
| Qd |
Use the demand function to complete the table
(b) Draw the individual's demand curve (use of graph paper is essential
(c) What is the maximum quantity the individual can buy of commodity X per unit of time?
(d) What is the relationship between quantity demanded and price in the function Qd = f(P)?
The table below relates to the application of fertilizer to a fixed area of land and the production of maize. Use the table to answer the questions that follow.
| Tones of fertilizer Applied | Total production in Bags | Marginal product |
| 0 | 1,000 | - |
| 1 | 1,100 | 100 |
| 2 | 1,250 | 150 |
| 3 | 1,500 | 250 |
| 4 | - | 400 |
| 5 | - | 250 |
| 6 | - | 125 |
| 7 | 2,350 | - |
| 8 | 2,380 | - |
| 9 | 2,330 | - |
(a) What will be the total output of maize when no fertilizer is applied to the land?
(b) Calculate the total product after the application of the following quantities of fertilizer:
(i) 4 tonnes;
(ii) 5 tonnes;
(iii) 6 tonnes.
(c) Calculate the marginal product after the application of the following quantities of fertilizer:
(i) 7 tonnes;
(ii) 8 tonnes;
(iii) 9 tonnes.
(d) (i) After what level of the application of fertilizer does diminishing marginal returns occur?
(ii) After what level of fertilizer application will the total output decrease?
What would be the economic consequences if prices were fixed by the government?
Explain the advantages and disadvantages of a joint stock company as a form of business organization.
What are the positive and negative effects of inflation on the economy?
