1) a) A consumer splits their income equallybetween two goods. Ifthepriceofone good increases by 10% andtheir incomeincreases by 5%, show thatthe consumer'soptimal consumption bundle will change despite them being able to affordtheiroriginal bundle.

1) b) When estimating a demand function,explain why fitting a line through a line of best fit through observed price and quantity combinations over time is not likely to yield good estimates.

1) c)Select a (domestic) public limited company of your choice which has some degree of market power. Evaluate the pricing strategies it employs for its core product/business in order to increase its market share and profitability within its industry (at the national level).