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Problem :
(a) Describe the law of demand and the factors affecting demand.
(b) llustrate and Explain how demand of a commodity will change if there is a tax on that product.
(c) Describe the term Price Elasticity of Demand, how it is calculated and give an example of price elasticity and inelasticity.
(d) Distinguish between a variable cost and firm's fixed cost and give an example of each.
Define the price ceiling A price ceiling is a highest price that sellers can charge for a product.
What are the income and cross elasticities of demand? Why might they be useful? Explain.
Hi I need help with elasticity. I think the problem has already been posted to your site.
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