Question 3

a.

Why the Demand Curve is downward sloping from left to right and Supply Curve is upward

sloping from left to right?

b. Demand Curve is sometimes shift either to the left or right depends on the decrease or

increase in demands. The factors that influencing the above are called Non Priced

Determinants of Demand. Give only 2 that you know and explain?

C. What do you understand with The Law of Supply?

d. The factors that determined quantity of market supply are (1) input prices, (2) technology, (3) number of producers, and (4) expectation for future prices. Choose 2 (two only) and explain?

E. What do you understand by the Market Equilibrium? And what are the causes that create Market Surplus and Market Shortage?

16 Marks