TABLE 1 PRICE ELASTICITY OF DEMAND FOR GOODS AND SERVICES Basket of goods and services Price elasticity of demand Basket 1 Airline travel 2.4 Restaurant meals 2.3 Fresh fish 2.2 New cars 1.2 - 1.5 Basket 2 Cigarettes 0.4 Coffee 0.3 Gasoline 0.2 Electricity 0.1 Source: The Economy Today (Schiller) a) i) Define price elasticity of demand. (2 marks) ii) Determine and explain the price elasticity of demand for goods and services in Basket 1 and Basket 2. (4 marks) b) i) Sketch the demand curve to show the elasticity of demand for goods and services in Basket 2 (1 mark) ii) Discuss two (2) factors that influence its elasticity. (4 marks) c) Using a diagram explain the effect of a decrease in income on the market for new car. (4 marks) d) If price of fresh fish keeps on increasing in the market, discuss the type of price control that the government can use to control the increasing price of fresh fish