KUMASI TECHNICAL UNIVERSITY FACULTY OF BUSINESS DEPARTMENT OF PROCUREMENT AND SUPPLY CHAIN MOT Bachelor of Technology (ITech) Procurement and Supply Chain Mat Resit for First Semester Examination -2021/2022 First Year PSC 157 - BUSINESS ECONOMICS Time: 2 hours date Index Numbers.... INSTRUCTIONS wer all questions in Section A & Two (2) questions in Section I SECTION A: DATA RESPONSE The following are the demand and supply functions for key soap in the Ghanaian economy produced by the Uniliver Ghana Lid and made available by the research department of the pumpanos Q - 70 - -P Q - 4P - - 40, where F and Q) are the price and quantity of the product respectively Use the above information to answer the questions that follow. Which of the functions represents demand function and why? 15 marks) Which of the functions represents supply function and why? [5 marks] Determine the equilibrium price and quantity of key soap in the economy. (5 marks) As a manager of the company, calculate the extent (size) of shortage if a price ceiling of GHe15 is imposed. [7.5 marks] What will be the size of the surplus on the market if a minimum price of GHe 35 is established. [7.5 marks) L Find the new equilibrium price and quantity if sellers increase the supply by 45 units irrespective of price level due to a subsidy. [7.5 marks] Compute the own price elasticity when price rises from GHe8 to GHe 12 [7.5 marks) h. What type of elasticity of demand is key soap and give one policy implication. [5 marks] KSTUPE / RX / PSC 316-22