Compute and explain the price elasticity of demand when price decreases from

RMS.50 to RM4.50. Determine the type of elasticity.

(5 marks)

b) Compute and explain the price elasticity of supply when price increases from

RIMO.50 to RM4.50. Determine the type of elasticity.

(5 marks)

c Compute the cross elasticity of demand between good A and B when price decreases from $3.50 to $1.50. Determine the type of product.

(4 marks)

d Compute the income elasticity of demand for good A when income increases from

RM400 to RM880. Determine the type of product.

(4 marks)