Q1. The demand for basic food stuffs like grains tends to be inelastic with respect to price. Use this factor to explain why highly fertile farmland will fetch a relatively high price at any point in time, but that rising farm productivity over time has negative overall influence in farmland prices.
Q2. What is marshal's law of demand? Explain how does it relate to the equal marginal rule , the law of diminishing marginal utility and consumers surplus?
Q3. What is the difference between a change in the quantity supplied and a shift in the supply curve?