Wednesday, February 4, 2015

Price Demand Elasticity Q2

Q.
a) Illustrate how prices are determined by the free forces if demand and supply. (5 marks)

b) Show the different types of elasticity of demand. (5 marks)

c) Necessities tend to be inelastic in demand whereas luxuries tend to be elastic. Explain. (10 marks)

(20 marks, 2014 Q2)

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