QUESTION TWO [40] 2.1 Defend the reason for the following, using elasticity of demand as the basis for your answer. Motivate your answer with the aid of examples. 2.1.1 Narrowly defined markets tend to be associated with a more price elastic demand than broadly defined markets. (6) 2.1.2 Goods tend to have more price elastic demand over large time horizons. (6) 2.1.3 Necessities tend to have relatively inelastic demands, whereas luxuries have relatively inelastic demand (9) 2.2 Read the scenario below and answer the question that follows: George Richard is a farmer who is also a skilled metal worker. He makes unique garden sculptors that could earn him R400 per hour. One day he spent 10 hours planting R5 000 worth of seeds on his farm. 2.2.1 Measure George's opportunity cost. (4) 2.2.2 Determine the cost that is measured by his accountant (4)1