QUESTION ONE [45] Use the given diagram depicting the market for poultry and answer the questions P P2 P1 Q1 Q2 S D D1 that follow: 1.1 Speculate, giving reasons, the factors which would shift the market demand curve for poultry from D to D1. (15) 1.2 Justify the importance of income elasticity of demand and explain the type of income elasticity applicable to this market. (15) 1.3 The poultry market is considered to be monopolistically competitive. Evaluate the extent to which you agree with this contention. (15) QUESTION TWO [20] Critically discuss the role of the various factors of production in the construction industry. (15) QUESTION THREE [15] "AfCFTA is a start, but private sector empowerment is needed to unlock full free trade benefits". Taking the above statement into consideration, describe the benefits of free trade. (15) QUESTION FOUR Read the extract below and answer the questions that follow: [20] South Africa's rand is undervalued - here's where it is heading right now, according to Absa The rand held its ground against the dollar in afternoon trade on Tuesday (3 May), having given up 3.6% over last week, trading at R15.99 relative to the greenback - near its weakest levels in nearly five months. Load shedding, floods in KwaZulu-Natal, rising inflation, and a stronger dollar have all played their part in pushing the rand back above R16.00 versus the dollar in recent sessions, before Tuesday's slight recovery. "The local unit has come under significant pressure, exacerbated by a lack of liquidity during the session yesterday, which saw it relinquish all of the previous session's gains and more," said Nedbank in a research note. Absa noted that while the rand has weakened sharply in recent weeks, "we believe it is currently undervalued. With the current account set to remain in surplus this year, we expect the rand to recover to R15.25/USD by mid-year before weakening gradually to R15.75/USD by year-end. Source: https://businesstech.co.za/news/finance/582514/south-africas-rand-is- undervalued-heres-where-it-is-heading-right-now-according-to-absa/ Critically evaluate whether the South African Rand is "undervalued" as mentioned in the article above and discuss the factors that may have contributed to the weakening of the Rand. (20)