Economics Paper 1

Page 1 of 4 Apex Examination Council 0781170799 CANDIDATE’SNAME…………………………………………………………………………………………………………… SIGNATURE………………………………………………………………… P220/1 ECONOMICS Paper 1 3 Hours PRE -MOCK EXAMINATIONS SET ONE2026 Uganda Advanced Certificate of Education ECONOMICS Paper 1 3 Hours INSTRUCTIONS TO CANDIDATES This paper consists of two sections A and B • Answer ALL items in Section A and ONLY TWO items from Section B. • Read each scenario carefully before answering. • All responses should be presented in clear, well -structured economic essays. • Credit will be awarded for logical analysis, application of economic principles, and relevant illustrations from Uganda and elsewhere. • Any assumptions made should be clearly stated. Personal number Page 2 of 4 Apex Examination Council 0781170799 SECTION A (Compulsory ) ITEM 1 The rapid gro wth of hotels, schools, hospitals and restaurants in major urban centres such as Kampala, Mbarara and Jinja has greatly increased the demand for poultry products, particularly eggs. During the past year, the price of a tray of eggs increased from UGX 10,00 0 to UGX 18,000. Despite the rise in price, consumers continued purchasing large quantities because eggs are considered an important and affordable source of protein by many households. As returns from poultry farming increased, many farmers transferred la nd, labour, capital and managerial resources from enterprises such as maize growing, piggery and fish farming into commercial poultry production. Consequently, output of alternative agricultural products declined, leading to shortages and rising prices in some markets. Consumer groups have expressed concern about increasing food prices, reduced variety in agricultural production and the welfare of low - income households. Government is considering whether intervention is necessary to protect consumers and ens ure efficient allocation of productive resources in the economy. Task Prepare an essay analysing the factors that influence consumers’ responsiveness to changes in the price of eggs, and …