Question I {b} You are the manager of medium-sized company that assembles personal computers in Ghana. You purchased most components such as random access memory (RAM). which is an input for your personal computers. on a competitive market. Based on your marketing research. consumers view personal computers in the Ghanaian market as a normal good. One moming. you picked up a copy of the Graphic Business. published by the Graphic Communications Group limited. and read an article indicating that the price of RAM have been increased effective the next day. forcing manufacturers to produce computers at a high unit cost. In addition. the article indicated that consumer incomes are expected to fall over the next two years as the economy dips into recession. Explain your answer with an appropriate diagram. how these events would affect the equilibrium price and quantity. 5 marks Question 1 {e} The economy of Ghana is made up of three sectors namely Agriculture. Industrial and Services. These three sectors contribute to the national output. For decades prior to the Ztltls. the Agriculture sector contributed the most to the national output. Sadly. in recent years however. the sector has been the least contributor. Trends in production of major food crops such as maize. rice and sorghum show that on-farm productivity has stagnated and the exploitable difference between the actual and the potential output of most of the crops [yield gap} has widened. Low and inadequate levels of usage of productivity enhancing technologies such as quality seeds of improved varieties and fertilizer. thin extension services and weak market linkages contributes to the poor agriculture performance. It was against this background that the NPP led govemment implemented one of their agship programmes "Planting for Food and Jobs". The programme is primarily aimed at making subsidized improved seeds and fertilizers available to farmers. sensitizing farmers on the adoption of good agronomic practices and the marketing of agriculture crops over an electronic agriculture platform. This programme is ultimately aimed at boosting crop yield. in addition. suppose that agriculture products in Ghana are normal goods and due to the implementation of good economic policies and the curtailing of corruption. the economy of Ghana grows signicantly leading to appreciable increases in the general consumers\" income levels. 1|Illl'ith the aid of a diagram. explain the effect of these events on the equilibrium price and quantity of agriculture crops assuming the impact of the planting for food and jobs is larger than the impact of the increase in income. 5 marks