a. Discuss, in economic terms, how a price floor affects the market price for a product.

Question

Are there any disadvantages which the consumer may suffer as a consequence of such a minimum price? Support your arguments with the appropriate diagram.

b. Discuss FIVE determinants of the price elasticity of demand.

c. Cross price elasticity of demand between private car use and public transport is positive. Is this true or false? Explain your reasoning.

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