The table below shows the demand and supply schedules for a commodity. Price (Sh. Per Kg.) Demand
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Question:
The table below shows the demand and supply schedules for a commodity.
Price (Sh. Per Kg.) | Demand (Kg) | Supply (Kg) |
10 | 100 | 20 |
20 | 85 | 36 |
30 | 70 | 53 |
40 | 55 | 70 |
50 | 40 | 87 |
60 | 25 | 103 |
70 | 10 | 120 |
Required:
- Determine the demand and supply functions for this market (4 marks)
- What is the price elasticity of demand for this commodity at equilibrium? (4 marks)
- How can a firm try to make its products more price inelastic (2 marks)
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