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IB ONLINE TUTORS IN GURGAON | PAS CLASS IB

Chapter 3 Elasticities

  1. Explain how the incidence of an indirect tax depends on the price elasticity of demand and the price elasticity of supply. [10]
  2. Using diagrams, explain how the incidence of an indirect tax may be affected by the price elasticity of demand. [10]
  3. Explain the factors which might influence of the cross price elasticity of demand between different products.[10]
  4. Examine the importance of income elasticity of demand for the producers of primary products, manufactured goods and services.[15]
  5. Explain the importance of price elasticity of demand and cross-elasticity of demand for business decision-making. [10]
  6. Studies have shown that the demand for tobacco tends to be highly price inelastic. Evaluate the view that governments can best reduce smoking by substantially increasing taxes on cigarettes. [15]
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