Answer the following questions in 3 pages with example(s) and explanation.
1. Why might you expect the demand for petrol to be more elastic in the long run than the short run? Name, with a brief explanation, two other goods that might share this characteristic. (These ‘other goods' should not be in the general field of fuel or power.)
2. Evaluate the following statement: Toyota faces competition from many other firms in the world market for automobiles; therefore, Toyota cannot have market power.