a) Calculate and interpret the elasticity of demand for each of the following demand functions at point where price is N$12:

1. P = 65 - 0.4Q (5 Marks)
2. 4P + 2Q = 74 (5 Marks)
3. Q = 60 - 0.5P (5 Marks)
4. 5P = 120 - 3Q (5 Marks)

b) Is it true, as many people claim, that taxes assessed on producers are passed along to consumers? That is, do consumers pay for the entire tax? (5 marks)