3 A State The Law Of Demand 5 Marks B The Tuition Fees Of The Ousl Has Increased Over The Years At The Same Time 1 (80.24 KiB) Viewed 10 times
3 A State The Law Of Demand 5 Marks B The Tuition Fees Of The Ousl Has Increased Over The Years At The Same Time 2 (56.85 KiB) Viewed 10 times
3. a. State the "Law of Demand" (5 marks) b. The tuition fees of the OUSL has increased over the years at the same time the number of students enrolled in the OUSL also have been increasing. Does this example demonstrate that the Law of Demand? (5 marks) c. Suppose the demand and supply curves for computers (for a given particular specification specified) are D = 650,000 - 2P and S = 50,000 + P Where P is the price of computers in rupees i. What is the price of a computer sold? (3 marks) ii. What is the quantity of computers bought and sold at equilibrium? (3 marks)
iii. Suppose that government impose a price celling (the maximum price a computer system can be sold for a given specification) which is Rs. 150,000 on computers. (4 marks) a) What would happened to the number of computers demanded and supplied? (5 marks) b) Name the market situation in economic terms. (2 marks) c) As a university student would you support the policy? Explain. (3 marks)
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