Question 1:
i) Elaborate on the different types of price discrimination that a monopolist may use and what are the required preconditions for its application?
ii) What determines the price elasticity of demand?
iii) How can businesses make use of the concept of cross price elasticity of demand?
iv) Explain using diagrams, how is consumer surplus related to the price elasticity of demand?
Question 2:
i) Elaborate on the different types of unemployment.
ii) Reducing occupational immobility of labour is the only way of decreasing the level of unemployment. Discuss
iii) Comment on the view that ‘GDP is not the best measure to evaluate economic growth and standard of living. Real GDP per capita is a better measure'.