Answer to Question #206420 in Economics for Sharshar

Question

Question Eleven

Sharp Inc., a wholly Ghanaian owned company specializes in the production of hand sanitizers

branded as Quin. The company has branches in all the regions in Ghana with its head office 

located at Cape Coast. It employs 1,200 people and pays an average of GHȼ 550.00 as income 

tax to the government of Ghana on a monthly basis. Suppose that seven thousand, eight hundred 

and twenty (7,820) units of Quin are produced and supplied by Sharp Inc. but the quantity 

demanded for Quin is eight thousand (8,000) units. Ceteris Paribus, a GHȼ 20.00 change in the 

price of Quin results in a change in quantity demanded for and supplied of 4 and 5 units,

respectively. [Hint: change in X due to change in Y is given as ]

Answer 1

a) 7,820

b)

$$E=\frac{\delta Q}{\delta p}=\frac{1}{20}=0.05$$