Q2. A) When price of indomie noodles was lowered from N 50, to N 40 per unit.

quantity demanded increases from 400 to 600 units per week. Calculate the

coefficient of price elasticity of demand and determine whether by lowering price

this firm has made a wise decision?

B) With the aid of appropriate diagrams discuss the effects of changes in supply on

a demand curve and explain the major factors that bring about such a change in the

market. Using this diagram justify for the reason why we purchase goods at lower

prices during the harvesting period of farm products.

Q3. A) Nivea Nigeria limited is a cosmetic firm that specializes in the production

and marketing of cosmetic products. In the first quarter of 2020 this firm increased

its monthly expenditure on advertising from N 500,000 to N 750,000. And as a

result, monthly sales increased from N 20,000,000 to N 35,000,000. As a manager.

calculate the promotional elasticity of sales and determine whether the firm has

made a right decision?

B). The following table represents the demand schedule for tom-tom per week

produced by tom-tom Nigeria limited.

Given that cost per unit is N 5, and Profit = Total Revenue - Total Cost

determine the price and quantity at which this firm maximizes profit?

Q2. A) When price of indomie nocdies was lowered from N50, to N 40 per uait, quantity demanded increases from 400 to 600 units per weck. Calculate the coefficient of price elasticity of demand and determine whether by lowering price this firm has made a wise decision? B) With the and of appropriate diagrams doscuss the effects of changes in supply on a demand curve and explain the majoe factors that bring about soch a change in the market. Using this diagram justify for the reasen why we purchase goods at lower prices during the harvesting period of farm products. Q3. A) Nivea Nigeria limuted is a cosmetic firm that specializes in the production and marketing of cosmetic products. In the first quartsr of 2020 this fim inereased its montbly expenditure on advertising from N. 500,000 to N750,000. And as a result, monthly sales increased from N20,000.000 to N35,000,000. As a manager. calcalate the promotional elasticisy of sales and determine whether the firm bas made a right decision? 1 B). The following table represents the demand schedule for tom-tom per week prodaced by tom-tom Nigeria limited. Given that cest per unit is N5, and Profit = Total Revenue - Total Cost , determine the peice and quantity at which this firm maximizes profit