Kindly answer question 1, question 2 and question 3.

1.1 Many health advisors wish to reduce the consumption of soft drinks. Advise the Minister for Health and Children on possible economic actions that the Government could take to reduce the consumption of soft drinks and critically assess the possible ramifications for the decrease in consumption. (5 marks) 1.2 Choose a company of your choice and describe how price discrimination would impact its profits. (5 marks) 1.3 Describe the effects of each of the following managerial decisions or economic influences on the value of chosen company in 1.2 : (10 marks) a) The company is required to automate all its operations b) The company implements technology that executes all repetitive tasks effectively c) The company raises the price for its products. Quantity demanded in the short run is unaffected, but in the longer run, consumption is expected to decline. 1.4 The company generated R500 000 in accounting profits last year. This year, having invested R5 000 000, R50 000 were received in profits. Calculate the return on investment. What steps should the company take in light of the calculated return on investment? (10 marks) 1.5 Discuss the concept of market equilibrium. Provide its pros and cons to the company in 1.2 (10 marks) 1.6 What is the relationship between quantity demanded and quantity supplied at equilibrium? (5 marks) 1.7 What is the difference between the demand and the quantity demanded of a product, say milk? Explain in words and show the difference on a graph with a demand curve for milk. (10 marks) Question Two (20 marks) 2.1 Write short notes with examples on the following (10 marks) a) Risk aversion b) Capital Rationing 2.2 Telkom is expected to grow at an annual rate of 3% for the foreseeable future. The current profits of Telekom are R1000 000 and have not been paid as dividends. What is the value of Telkom assuming the market interest is at 6% ? (10 marks) Question Three (18 marks) 3.1 Discuss the meaning of pricing policy in economics? Identify a company of your choice and explain its pricing policy. What are the internal and external factors that affect its pricing policy? (10 marks) 3.2 Identify and explain the instruments of fiscal policy? Briefly comment on South Africa's fiscal policy. (8 marks)