A normal good is a good for which demand increases when price increases. True or False? Explain your answer. 5 marks List and explain three circumstances in which the price elasticity of demand is greater than 1. Give examples of specic goods for which price elasticity is greater than 1 and explain why this is the case. 10 marks There are four different types of elasticities price elasticity of demand, cross- price elasticity of demand. price elasticity of supply and income elasticity of demand. Explain and comment on the sign of each of the different types of elasticity and what they mean. 10 marks A subsidy results in a deadweight loss. True or false? Illustrate and explain your answer. 10 marks Governments can inu'oducel'increase taxes to raise tax revenue and or to change consumer behaviour. Explain why certain taxes are more effective in changing behaviour while others are more effective in raising tax revenue and give examples. 7 marks The burden of a tax on the sale of a good is always shared equally between the buyer and the seller. True or False? Illustrate and explain your