a) Distinguish between price elasticity of demand and income elasticity of demand.

Question

With the aid of diagrams, discuss whether a firm’s revenue would increase, in response to price changes, if the price elasticity of demand for its product became highly elastic.

b) Explain, with examples, the significance of the value of a good’s cross elasticity of demand in relation to its substitutes and complements.

c) Explain how and why the price elasticity of supply of agricultural goods differs from that of manufactured goods

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