1. Clearly distinguish betweer each of the following pairs of concepts. They carry 3 marks each pair. The question carries a total of 30 marks (a) Market economic system; Command economic system (b) Choice; Opportunity cost (c) Demand curve; Demand function 2. You are given the following economic functions: Q_(1)=36-(1)/(3)p Q_(2)=-9+(1)/(2)p Where P is the market price for a particular good. Identify with reasons the demand and supply functions. Explain the negative intercept of the second function Q_(2) above.

1. (a) Market economic system: In a market economic system, the allocation of resources is determined by the forces of supply and demand in the market. The government plays a limited role in the economy, and individuals and businesses make their own decisions about what to produce and consume. Command economic system: In a command economic system, the government plays a central role in the economy, making decisions about what to produce, how to produce it, and who will receive the final product. The government determines the allocation of resources and sets prices.<br /><br />(b) Choice: Choice refers to the act of selecting among different alternatives. In economics, individuals and businesses make choices based on their preferences and the resources available to them. Opportunity cost: Opportunity cost refers to the value of the next best alternative that is given up when making a choice. It represents the cost of the opportunity that is forgone in order to pursue a particular course of action.<br /><br />(c) Demand curve: The demand curve is a graphical representation of the relationship between the price of a good and the quantity demanded. It shows the quantity of a good that consumers are willing and able to purchase at different prices. Demand function: The demand function is a mathematical equation that describes the relationship between the price of a good and the quantity demanded. It represents the quantity of a good that consumers are willing and able to purchase at different prices.<br /><br />2. The given economic functions are:<br />$Q_{1}=36-\frac {1}{3}p$<br />$Q_{2}=-9+\frac {1}{2}p$<br /><br />In this case, $Q_{1}$ represents the demand function and $Q_{2}$ represents the supply function. The negative intercept of the second function, $Q_{2}$, indicates that when the price is zero, the quantity supplied is negative. This is not a realistic scenario, as it would mean that producers are willing to supply a negative quantity of the good. The negative intercept could be due to a mistake in the given function or it could represent a situation where producers are willing to supply a negative quantity of the good at a certain price.