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QUESTION
(a) Explain the Law of demand and the factors affecting demand for a product or service.
(b) Explain and illustrate diagrammatically how the market demand for a product will react if there is a tax imposed on the good.
(c) What you understand by Price Elasticity of Demand? Illustrate and explain with examples, price inelasticity and elasticity and how it helps in decision making at firm's level.
(d) Distinguish between a firm's fixed cost and variable cost and give examples.
Why do all multinational automakers choose to use FDI to enter this industry? What are the drawbacks of using other entry modes such as exporting and licensing?
case study on diamond price and petrol price for exxception to the law of demand
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