Explain how the incidence of an indirect tax depends on the price elasticity of demand and the price elasticity of supply. [10]
Using diagrams, explain how the incidence of an indirect tax may be affected by the price elasticity of demand. [10]
Explain the factors which might influence of the cross price elasticity of demand between different products.[10]
Examine the importance of income elasticity of demand for the producers of primary products, manufactured goods and services.[15]
Explain the importance of price elasticity of demand and cross-elasticity of demand for business decision-making. [10]
Studies have shown that the demand for tobacco tends to be highly price inelastic. Evaluate the view that governments can best reduce smoking by substantially increasing taxes on cigarettes. [15]
