N 17 Quest b (iii)

(iii)Discuss how knowledge of price elasticity and income elasticity might beof practical use to a firm dealing in the sales of mobile phones in decidingon its revenue strategy.[10 marks]

J 18 Quest 1 b

(iv) The price and income elasticity of demand is an important concept for any businessmen and every government in their decision making.

You have been appointed as the Manager of a small and medium enterprise. Explain how the knowledge of price elasticity and income elasticity of demand can be of use to you. Use illustrative examples to support your answer.[12 marks]\

j 18 Quest 3 (b)

(b) With the aid of diagrams, compare and contrast the long-run equilibrium position of a monopoly with that of a perfectly competitive firm, paying

special attention to efficiency.[15 marks]

N 18 Quest 3(d)

(d)Using diagrams explain why firms do not immediately go out of business if totalrevenue fails to cover total costs of production.[8 marks]