Get premium membership and access revision papers, questions with answers as well as video lessons.

Hbc 2108 :Introduction To Microenomics Question Paper

Hbc 2108 :Introduction To Microenomics

Course:Bachelor Of Commerce

Institution: Multimedia University Of Kenya question papers

Exam Year:2014

MULTIMEDIA UNIVERSITY OF KENYA
FACULTY OF BUSINESS AND LAW
BACHELOR OF COMMERCE,FIRST YEAR,FIRST SEMESTER
HBC 2107;INTRODUCTION TO MICROECONOMICS,CAT ONE

INSTRUCTIONS TO CANDIDATES:ANSWER ALL QUESTIONS

QUESTION ONE
a)Given P=300-2Qd and Qs=50+2P
1.Calculate the equilibrium Quantity and equilibrium price(4marks)
2.Explain the advantages and disadvantages of Government intervention in the running of markets.(6marks)

b)Assume that the price of good Y increases from Kshs .30 to Kshs. 35 and as aresuit the quantity demanded of good X moves from 500 Kgs to 250 Kgs .
1. Calculate cross elasticity of demand (4marks)
2.Explain what kind of good is X to Y(2marks)
3.Discuss the application of cross elasticity of demand(6marks)
QUESTION TWO
a)Define microeconomics and state the main assumptions of microeconomics theory(6marks)
b)Discuss the determinants of price elasticity of demand(4marks)
c)With an appropriate diagram,explain how a price decrease can be decomposed into Income and Substitution effects(8marks)

Hbc 2108 :Introduction To Microenomics Question Paper

More Question Papers

Popular Exams

Mid Term Exams

End Term 1 Exams

End Term 3 Exams

Opener Exams

Full Set Exams