Answer the following 30 Questions.
1. Define non-market price?
2. What is maximum price?
3. Why does the government set maximum price?
4. Illustrate the effects of imposing a maximum price below the market price?
5. What is minimum price?
6. Why does the government set minimum price?
7. Illustrate the effects of setting a minimum price above the market price?
8. Illustrate the market for a product with fixed supply?
9. Illustrate the effects of imposing taxes?
10. With the help of demand and supply diagram explain the effects of granting production subsidies?
11. What is meant by Price Elasticity of Demand?
12. How is PED calculated?
13. When can the demand be elastic?
14. When can the demand be inelastic?
15. List the five degrees of elasticity of demand?
16. Identify the factors affecting PED?
17. Explain the importance of PED to producers?
18. Explain the importance of PED to the government?
19. What is meant by Income Elasticity of Demand?
20. How is IED calculated?
21. What is meant by Cross Elasticity of Demand?
22. How is CED calculated?
23. Illustrate perfectly elastic demand?
24. Illustrate elastic demand?
25. Illustrate unitary elastic demand?
26. Illustrate inelastic demand?
27. Illustrate perfectly inelastic demand?
28. Why is demand for habit forming goods inelastic?
29. What are substitutes? Give an example.
30. What are complements? Give an example.