a) Explain the link between the basic economic problem of scarcity, opportunity cost and prices faced by consumers, workers or firms.
Question
Explain how an equilibrium price for a product is established in a free market and how it may change.
b) Using demand and supply analysis, explain the possible causes of the increase in the sales of electronic goods such as tablets, experienced in recent years.
c) Discuss whether the imposition of maximum prices by government would solve the problem of scarcity.
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