a) “Prices have risen because market women are hoarding”. “Prices have risen because consumers are holding large stocks for fear of future shortages” Reconcile the two statements by means of diagrams.

                                                                                                                                               

b)         Solve the following and interpret your results appropriately

1. When price of Motorola is GH¢10 demanded of Nokia is 50 units. The price of Motorola increases to GH¢12 and demand for Nokia increases to 70 units     

ii.         When the price of car is GH¢10,000 demand for fuel was 50,000 litres per month. Price of car increases to GH¢ 60,000 and demand for fuel fall to 5,000 litres.                                                                                                                           

iii.        A 10% fall in the demand of koobi has been attributed to a 5% increase in the price of momoni.                                                                                                                                                                                                                                               

c)     How relevant is elasticity to the Ghanaian economy?