a) Three economic assumptions made while analyzing demand include:

• Ceteris paribus: All other factors like income, prices of related goods, and tastes remain constant, allowing isolation of price-demand relationship; crucial in Ghanaian banking for forecasting loan demand under stable BoG interest rates.
• Rational behavior: Consumers aim to maximize utility with given resources, as seen in customers choosing low-fee accounts post-2022 DDEP to optimize savings.
• Perfect information: Consumers know all prices and qualities, though in reality, BoG’s transparency directives help mitigate asymmetries in financial products.

b) Three reasons inducing a consumer to buy more units as income rises are:

• Increased purchasing power: Higher income allows affording more quantity without sacrificing other goods, e.g., Ghanaian households buying more consumer durables financed by bank loans.
• Substitution effect: Consumers shift from inferior to normal goods, increasing demand for the commodity if it’s normal, like upgrading to premium banking services at GCB Bank.
• Income effect: For normal goods, demand rises directly with income, as observed in rising demand for investment products in Ghana’s growing middle class.

c) Three determinants of supply of maize include:

• Production costs: Changes in input prices like fertilizers or labor affect supply; in Ghana, subsidies under Planting for Food and Jobs influence maize output.
• Technology: Advances in farming techniques or seeds increase supply efficiency, as supported by agricultural loans from banks like Agricultural Development Bank.
• Weather conditions: Favorable rainfall boosts yield, while droughts reduce supply, impacting rural banking and food price stability monitored by BoG.

d) Two commodities with fairly inelastic supply are:

• Land: Fixed in quantity, supply doesn’t respond much to price changes; relevant in Ghana where land collateral for loans is limited.
• Antiques: Unique items with fixed historical supply, inelastic to price rises.