EXAMSHARE

Western Delta University, Oghara Delta State

department of economics
college of social and management sciences
western delta university

first semester examination 2022/2023 session

ECO201 - Introductory Microeconomics I time: 2hrs: 30mins

answer QUESTION 1 and any other THREE questions

  1. Question 1

    1. What is demand? (3 marks)
    2. Outline and discuss the determinants of bread. (7 marks)
    3. Write short notes on effective demand and effective supply. (5 marks)
    4. With the aid of a diagram explain and show the difference between changes in demand and changes in quantity demanded. (10 marks)

  2. Question 2

    1. Given the following demand and supply functions Qd = 100 - 10p and Qs = 100 + 20p. Calculate:
      1. Equilibrium price (3 marks)
      2. Equilibrium quantity demanded and supplied. (3 marks)
    2. Given the following demand functions Qd = 200 - 10p, calculate:
      1. The elasticity of demand at #5.00 (3 marks)
      2. If the price doubles to #10.00, calculate the arc elasticity. (3 marks)
      3. Is demand elastic or inelastic? Why? (3 marks)

  3. Question 3

    1. What is utility? List the approaches to analyze consumer behaviour. (6 marks)
    2. Differentiate between cardinal and ordinal theories of consumer behaviour. (6 marks)
    3. State the law of diminishing marginal utility. (3 marks)

  4. Question 4

    Outline and discuss seven assumptions and properties of indifference curve.(15 marks)

  5. Question 5

    1. Explain the following concepts:
      1. Marginal rate of substitution
      2. Transitivity
      3. Rationality
      (5 marks)
    2. List five contemporary approaches to price determination. (5 marks)
    3. State five importance of elasticity of supply. (5 marks)