Table 2.2 represents Mr. Adebowale's annual income and the quantity of garri demanded. From Table 2.2, Calculate: i. co-efficient of income. ii. what type of goods is garri to Mr. Adebowale. Briefly explain four factors affecting elasticity of supply.

here's the solution to question 2. a) i) Co-efficient of income Step 1: Calculate the percentage change in quantity demanded. The quantity demanded changed from 50 to 40. Percentage change in quantity demanded = New quantity - Old quantityOld quantity × 100\% = (40 - 50)/(50) × 100\% = (-10)/(50) × 100\% = -0.2 × 100\% = -20\% Step 2: Calculate the percentage change in income. The income changed from N120,000 to N200,000. Percentage change in income = New income - Old incomeOld income × 100\% = (200,000 - 120,000)/(120,000) × 100\% = (80,000)/(120,000) × 100\% = (2)/(3) × 100\% ≈ 66.67\% Step 3: Calculate the income elasticity of demand (co-efficient of income). Income Elasticity of Demand = Percentage change in quantity demandedPercentage change in income = (-20\%)/(66.67\%) ≈ -0.30 The co-efficient of income is -0.30. a) ii) What type of goods is garri to Mr. Adebowale? Since the income elasticity of demand is negative (-0.30), garri is an inferior good to Mr. Adebowale. This means that as his income increases, his demand for garri decreases. b) Briefly explain four factors affecting elasticity of supply. • Availability of inputs: If raw materials, labor, and capital are easily accessible, producers can quickly increase output, making supply more elastic. Scarcity of inputs leads to inelastic supply. • Time horizon: In the short run, firms have limited ability to change production, so supply is often inelastic. Over the long run, firms can adjust capacity and technology, making supply more elastic. • Storage capacity: Goods that can be stored easily and cheaply allow producers to hold inventory and adjust supply to market changes, resulting in more elastic supply. Perishable goods have inelastic supply. • Mobility of factors of production: If resources like labor and machinery can be easily moved between different uses, producers can quickly shift production in response to price changes, leading to more elastic supply. What's next?