Elastic or Inelastic demand Q2

Q.
a) Decide whether the following goods have elastic or inelastic demand. Give reasons.

i) Petroleum
ii) Clothes
iii) Jewellery
iv) Low-cost house
v) Toothpaste

(5 marks)

b) State the special characteristics of land as one of the factors of production. (5 marks)

c) Illustrate Ricardo's theory of rent and the assumptions. (10 marks)

(20 marks, 2012 Q2)