Q3 ai). If the price of oil falls from $1.80 per litre to $1.50 per litre, how this would affect the Demand or Supply or quantity demanded / quantity supply of oil? (1 mark)

Question 3b: If the quantity demanded (Qd) for oil increases from 50 litres to 60 litres per week when the price of oil rises from $1.80 to $1.50 per litre.

Q3 bi). Calculate the price elasticity of demand (PED) for oil. (4 marks) Q3 bii). Is it price elastic or inelastic? Explain. (1 mark) Q3 biii). Calculate the total revenue (TR) when the price is $1.5 per litre? Explain (2 marks) Q3 biv). If the oil suppliers drop the price of oil, what would happen to their total revenue (rise or fall)? Explain. (1 mark

Units MB MC 1 200 30 2 160 70 MB VS MC 3 120 120 4 80 170 5 40 210 4 NO. OF UNITS 3 2 50 100 150 200 250 MB, MC