1. Economics research is more than conventional sciences. Discuss four (4) reasons in support of the given statement. (4)

2. You are given the following demand function:Q=-1/2P+60. At what price is total revenue maximized? (6)

3. Read the following information to answer the questions that follow:

The market for bananas is given by the following equation:

P=100-2.5Qd

P=Qs

3.1 What is the price elasticity of supply of bananas? (4)

3.2 Evaluate the market for bananas at a price of 20 and discuss whether there will be an equilibrium or not. (6)