Scheme of work for Economics, SS1, First Term

_____ is defined as a gradual and sustained rise in price level of goods and services in relation to their availability.

• A. Basis Point Rate

• B. Hike Rate

• C. Elastic Supply

• D. Elasticity of Price

• E. Price Inflation

• F. Aggregate Supply

The wholesalers can bring about an economy of scale.

• A. True

• B. False

Which of the following statement isn't a characteristics of the wholesaler?

• A. They may have to operate in specific areas or regions accorded them by the producer

• B. They are often popular in the line of goods they supply

• C. They are not risk bearers

• D. They have good storage facilities

• E. They often pay for goods supplied by the manufacturers in advance

• F. They usually have business agents or brokers

The wholesalers act as the middlemen in supply chain.

• A. True

• B. False

Large retailers who buy directly from manufacturers are termed as _____.

• A. Wholesale Retailers

• B. Certified Retailers

• C. Codified Retailers

• D. Commodity Retailers

• E. Manufacturers Retailer

• F. Conspicuous Retailers

_____ is a market whereby the sellers buy goods in lesser quantities from the wholesalers and sells in bits to the final consumers.

• A. Commodity

• B. Retail

• C. Wholesale

• D. Labour

• E. Common

• F. General

Which of the following is not a financial market?

• A. Money Market

• B. Bond Market

• C. Foreign Exchange Market

• D. Virtual Market

• E. Capital Market

• F. Stock Exchange Market

A _____ market provides a platform whereby job seekers link up with employers in an attempt to be hired.

• A. Wholesale market

• B. Bond market

• C. Physical market

• D. Virtual market

• E. Factor Market

• F. Labor Market

A unitary elasticity of supply is seen when a change in price brings about a corresponding and proportional change in the quantity of goods or services supplied.

The graph below shows a unit elasticity of supply:

Below is an instance of a unitary elasticity of supply:

• If a 100% increase in the price of wheat translates into a 100% increase in the production and supply of wheat, then the supply elasticity is said to be unitary elastic and its value is equal to 1.

Unitary elasticity is always equal to 1, that is: Es = 1

The supply curve runs diagonally and will pass through the center.

Supply elasticity is defined as the rate at which an increase in price of goods translates into its increased production and availability in the market. Supply elasticity is also termed as price elasticity of supply.

Consider the statements below:

• If a 100% increase in the price of rice translates into a 100% increase in the production and supply of rice, the supply elasticity is said to be unitary elastic and its value is equal to 1.

• If a 100% increase in the price of rice translates into a 50% increase in the production and supply (quantity) of rice, the supply elasticity is said to be inelastic and its value will be greater than zero and less than 1. In this case, the exact value is 0.5: (value of change in the quantity of rice divided by value of change in price of rice = 50/100 = 0.5).

Please read on supply elasticity here

The individual demand schedule is a table that shows the demand of a commodity that an individual (consumer) purchased at various prices, and at a particular time.

The table below shows an individual demand schedule:

The market demand schedule is also referred to as an aggregate demand schedule, total demand schedule or composite demand schedule.

This is a table that shows the different commodities purchased by all the consumers or customers in the market.

The market demand schedule is the summation of the individual demand schedules, showing the demand of different customers for a commodity at a particular price. It is shown in the table below:

From the above table, notice that when the unit price of the commodity was 50 Naira, consumer A demanded 20 quantities while consumer B demanded 15 quantities.

Please read more on demand schedule here.

Below are definitions of demand from the perspective of some notable professors:

The demand for goods is a schedule of the amounts that buyers would be willing to purchase at all possible prices at any one instant of a time.

Professor Mayers

Demand is the various quantities of goods that would be purchased per time period at different prices in a given market.

Professor Hibdon

The demand for anything, at a given price is the amount of it which will be bought per unit of time at the price.

Professor Benham

Generally, demand is defined as the willingness of a person, buyer or consumer to buy a specific quantity of goods or service at a given price and time.

From the above definitions, we can infer that the definition of demand is referenced to three major factors. These are:

1. Quantity of Goods Demanded

2. Price

3. Time

Please read more on the concept of demand here.