Question 1 Price for goods A Quantity Income (RM) Demand (RM) Goods A Goods B Goods C 1 100 25 20 2500 NI 2 80 40 20 2000 3 60 55 20 1500 4 4 30 60 20 1000 (4M) a) Explain TWO (2) factors that affecting elasticity of demand. b) Calculate the price elasticity of demand for goods A when its price increase from RM 2 to RM4 c) Based on your answer (b), identify the elasticity (3M) (1M) (2M) (3M) d) Explain definition of cross price elasticity of demand e) Calculate the cross-price elasticity for goods B when the prices of goods A decrease from RM3 to RM1. f) What the relationship between goods A and goods B? g) Explain definition of income elasticity of demand (1M) (2M) h) Calculate income elasticity of demand for goods B if consumers' income increases from RM 1500 to RM 2500 (3M) i) Based on your answer (h), determine types of goods B. (1M)