Answer three of the four questions below in 1000 words or fewer using diagrams to illustrate your answers. Each question answered is worth 10% of your overall mark for the module.
a) Using diagrams explain why governments place higher tax rates on products such as petrol and cigarettes.
b) Examine the impacts of rationing on a certain consumer good.
c) Why is the concept of price elasticity of demand of interest to the owner of a travel agent?
d) Discuss the potential impacts a focus on ethical behavior by a firm might have on its profit margins.