a) True or false and explain. Illustrate with a graph where appropriate.

i)Rent control for apartments creates surplus of rental apartments. [5 marks]

ii)Since demand for agricultural products is inelastic, higher prices mean lower incomes for farmers. [5 marks]

b) Use appropriate diagrams to discuss the relationship between:

Total product of labour (TPL) and marginal product of labour and; Average product of labour and marginal product of labour. [10 marks]