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Demand for oil more elastic

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Reference no: EM131432642

1) Why might restaurant charge very high prices for wine and bottled water and yet quite reasonable prices for food?

2) Give some examples of things that could make the demand for oil more elastic. What specific policies could the government take to make demand more elastic?

3)  Use support and demand diagram to explain

a) the full in coffee prices from 1997 to 2002

b) the likely effect on coffee prices of the factors referred to in the final pa paragraph.

4. In a market economy would you expect higher prices of the factors to lead to lower or higher output?

Reference no: EM131432642

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