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QUESTION
(a) With reference to price elasticity of demand, discuss and illustrate the effects on government revenue of increasing value added tax on goods and services.
(b) What are the factors affecting price elasticity of demand for tourism in Mauritius?
(c) Using appropriate examples, explain the terms public and merit goods.
(d) Explain, with the help of relevant examples, the relationship between private, external and social costs and benefits.
Question 1 Explain the law of diminishing returns. What are its causes and effects? Question 2 Compare perfect and imperfect markets Question 3 A monopolist with a linea
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