(a) The demand (D) and supply (S) equations for a commodity (X) are given by:- D = 2000 - 20P S = -500 + 30P, where P = Price (R) per unit

(i) Find the equilibrium price and quantity and show on a suitable diagram. (4 marks)

(ii) Calculate Price Elasticity of Demand (PED) when price rises from R20 to R80. (2 marks)

(iii) A specific sales tax of R30 per unit is imposed on the good. Explain and illustrate the changes to part (i). (3 marks)

(iv) Comment on the burden of the tax. (3 marks) (b) Discuss the factors affecting: (i) demand for, and (ii) supply of a good (18 marks)

2. (a) Explain the concepts of Price Elasticity of Demand, Income Elasticity of Demand and Cross-Elasticity of Demand. (10 marks)

(b) To what extent are these concepts useful to:- (i) managers of shopping malls, and (ii) a government? (20 marks)

3. Discuss the effectiveness of fiscal and monetary policies in regulating economic activities in a country. (30 marks)