QUESTION
a) Differentiate between price, income and cross elasticity's of demand.
b) How can the concept of price elasticity be useful to the owner of a supermarket who wants to maximise sales revenue? Explain your reasoning, with the help of appropriate examples and diagrams.
c) Distinguish, with the help of diagrams and examples, between a firm's fixed cost and variable cost.
d) Explain why all firms aim at growing big in size.