Most of the candidates did not attempt this question. The few who did scored below
average marks. These candidates found it difficult to compute values from the graph. The
following answers were expected to be presented by candidates to score high marks in this
question.
(a) (i) Total Revenue =P x Q
=$40 x 40 tonnes
=$4,000
(b) $4,000 - $1,600= $2,400
(c) (i)
% Δ. in Quantity Supplied
% Δ in price
10 x 100
40 1 = 25 or 1
or or 0.25
100 4
40 x 100=25 or 1 or 0.25
40 1 100 4
ii) Co-efficient of price elasticity of supply is less than 1. Therefore the supply of
cashew nuts is price inelastic.
(d) (i) Increase in the level of income of consumers;
(ii) Favourable change in consumers' tastes and fashion;
(iii) Increase in the number of consumers;
(iv) Reduced availability of substitutes;
(v) I ncrease in the price of substitutes;
(vi) Availability of Credit facilities;
(vii) Advertisement;
(viii) Expectation of a rise in the price of cashew nuts.
