1. (a)Using the concept of price elasticity of demand explain why companies set different prices for the same product in different markets.

(b) Apart from price elasticity of demand examine the other factors which influence a company when setting a price.

2.(a) To what extent could it be argued that Microsoft is a monopoly? Justify your answer.

(b) Under which form of market structure are you most likely to find significant amounts of advertising taking place? Explain why this might be the case.

3.(a) Explain the idea of comparative advantage in international trade.

(b) Examine the means by which countries are able to restrict trade and assess the arguments used to justify these measures.

4. (a) Explain the difference between demand-pull inflation and cost-push inflation.

(b) Examine the policies which the government might use to reduce inflation in the economy. What are the likely consequences of these policies on economic growth?(