Economics Assignment

Running head: ECONOMICS ASSIGNMENT
Economics Assignment
Name of Student:
Name of University:
Author’s note:

ECONOMICS ASSIGNMENT1
Table of Contents
Answer: 1.........................................................................................................................................2
a)..................................................................................................................................................2
b)..................................................................................................................................................3
c)..................................................................................................................................................4
Answer: 2.........................................................................................................................................5
a)..................................................................................................................................................5
b)..................................................................................................................................................5
c)..................................................................................................................................................6
Answer: 3.........................................................................................................................................7
Reference List..................................................................................................................................9

ECONOMICS ASSIGNMENT2
Answer: 1
a)As the parliamentarians in Kenya felt that the prize of maize is too high and unaffordable for
the low income groups, the Kenyan Government has the option to set a limit of maximum prize.
A maximum price is set below the equilibrium price level which acts as a legal limit to help the
low income earning groups from a high price. The strategy is known as price ceiling. Keeping
the price below the equilibrium level. There occurs an excess demand due to shortage of supply.
Demand for the good will go up due to fall in prices. However, suppliers are unable to produce
that much quantity at lower price