Question
Q1 (a) Explain how greater advertising by a firm may reduce the price elasticity of demand for its product. (25 marks) (b) What factors determine
Q1 (a) Explain how greater advertising by a firm may reduce the price elasticity of demand for its product. (25 marks)
(b) What factors determine the cross-price elasticity of demand? (25 marks)
(c) Explain why firms will always maximise revenue by charging a price where demand is unitary elastic. (25 marks)
(d) Explain why firms will always maximise profit by charging a price where demand is elastic. (25 marks)
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Essentials of Economics
Authors: N. Gregory Mankiw
8th edition
1337091995, 978-1337515351, 1337515353, 978-1337091992
