PED and YED (AS w18)

(a) Explain the factors that can affect the value of the price elasticity of supply for a product. [8]
(b) Discuss whether income elasticity of demand is the most useful measure of elasticity to a firm. [12]

Consumer surplus, YED and CED (AS-s21)

(a) Explain how different impact on consumer surplus when the price rise a normal good with many substitutes to that of a necessity with few substitutes.

(b) Cross elasticity of demand has much practical uses for a firm selling electrical products than income elasticity of demand. Discuss. [12]

CED, PED and YED (AS-w20)

(a) The value of cross elasticity of demand for Jollibee’s hamburger with respect to the price of Family Mart’s Sando is +1.2 while the cross elasticity of demand for movie tickets with respect to the price of pop corn is -0.8.

Explain the significance of the variation in the values of cross elasticity of demand for the two pairs of goods. [8]