You are the Economic Consultant for Zuku Farms Ghana Limited. Zuku produces cowpea in a community
where producers are able to switch back and forth between cowpea and groundnut depending on market
conditions. Consequently, you were tasked by the management of Zuku and you estimated the demand
function for cowpea as follows:
where is the quantity of cowpea demanded in bags per month, is the average price of cowpea in Ghana
Cedis, is the average price of groundnut in Ghana Cedis, and Y is the income of consumers.
a. Assuming is initially GH¢31.00 per bag, Y is GH¢1001.50
i. Find the resulting demand function for cowpea and determine the number of bags Zuku can sell at
GH¢ 45.00 per bag. 4 marks
ii. Management is considering increasing price of cowpea by GH¢10.00 per bag. Advise management
on this price change using the concept of price elasticity of demand. 2 marks
iii. Explain why management should be worried about a reduction in the price of groundnut.
2 marks
Assume also that your estimated supply function for cowpea as follows:
Where is the quantity supplied of cowpea in bags, and are as defined above, is the price of
fertilizer per bag, is the amount of rainfall (in inches).
If inches and = GH¢31.00.
b. Find the resulting supply function for cowpea and determine the equilibrium price and quantity.
4 marks
c. Assuming the government imposes a tax of GH¢10 on every bag of cowpea sold, determine the new
equilibrium price and quantity. Explain the effect of the policy on the market.
6 marks
d. Sketch the demand curve and the supply curves for cowpea. 2 marks
[20 Marks]
Answers: 3
English, 22.06.2019 02:00
The following question refers to “the philosophy of composition” by edgar allan poe and on writing by stephen king. what is a key difference in the use of details in the texts? poe’s essay is dominated by facts, while king’s memoir is dominated by images and examples. poe references numerous authors and literary works, while king does not reference any other authors or literary works. poe includes a list of all the poems he has written, while king includes a list of all the books he has written. poe’s essay is full of personal details about his wife and children, while king’s memoir is filled with details about his pets.
Answers: 1
English, 22.06.2019 02:50
“the bane of the internet” is written in first-person subjective point of view, so the narrator a) tells the story as it is happening b)tells the story as it is happened in the past c)is a minor character who tells the story as it is happening d)none of the above
Answers: 1
English, 22.06.2019 03:00
Read the excerpt from "save the redwoods."another, one of the finest in the grove, more than three hundred feet high, was skinned alive to a height of one hundred and sixteen feet from the ground and the bark sent to london to show how fine and big that calaveras tree was—as sensible a scheme as skinning our great men would be to prove their greatness.which best describes how the excerpt appeals to readers’ emotions? the excerpt provides facts about the tree, which impresses readers’ scientific minds.the excerpt describes how the tree traveled to london, which excites the readers’ sense of adventure.the excerpt compares the tree to a person, which makes readers feel sympathetic toward the tree.the excerpt explains how to skin a tree, which makes readers feel awed at the height of the tree.
Answers: 1
English, 22.06.2019 03:30
Used for an event that has been completed before the present moment in time. simple past past perfect perfect progressive past perfect progressive
Answers: 1
You are the Economic Consultant for Zuku Farms Ghana Limited. Zuku produces cowpea in a community
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