GCEEconomicsElasticity2023

a) Distinguish between income elasticity of demand and cross elasticity of demand. (4 marks) b) Explain how cross elasticity of demand can be used to determine the relationship between two commodities, giving appropriate examples. (6 marks) c) i) State TWO importance of elasticity of demand to a government in its tax policy. (4 marks) ii) State ONE importance of elasticity of demand to a business firm in its pricing decision. (2 marks)

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