QUESTION 3 Explain the term price elasticity of demand? How is it measured? What factors influence market demand for products? If the price elasticity is -3 and RM 100 is the marginal cost of product X, what should be the optimal sale price? (Hint: apply the mark-up rule) QUESTION 4 What is meant by price discrimination? What are the conditions to make price discrimination effective? Discuss your answers with examples from the Airline Industry. QUESTION 5 Write short notes on: a. Law of diminishing returns and the short-run cost curve b. Economies of Scale and the long run cost curve c. New Economies of Globalization