a)What happens to the demand curve for electric clothes if electricity prices rises? Show in a supply-demand diagram, how the equilibrium price and quantity of electrics clothes driers change.

2.

a)Describe the principle-agent problem and illustrate 3 ways in which the problem can be solved.

b)Distinguish between a normal and inferior good using income elasticity of demand.

c) Describe why the elasticity of demand for petrol in inelastic