[10] QUESTION 3
(2)
3.1
(2)
3.2
Name TWO products with an inelastic demand.
What is the significance of price elasticity of demand to a producer?
Distinguish between normal and inferior goods.
(4)
3.3
3.4 Use the scenario below to calculate the Ped (PRICE ELASTICITY OF
DEMAND):
If the price a product increases from R200 to R250 then demand falls from R450
to 300 units. Calculate Ped (PRICE ELASTICITY OF DEMAND) and determine
the degree of elasticity.
(4)
[12]