ECO101 - Economics - Principles Of Economics - Assignment
- Subject Code :
ECO101
- Country :
Australia
Please Answer The Following Four Discussion Questions (each worth 10 marks)
1. What will happen to total revenue of a firm if it raises its price and its demand is elastic (or inelastic)?
2. What are the key factors determining if the demand is elastic or in-elastic? Providing 3 factors and explain each of them with examples.
3. What is the opportunity cost? Should individuals and nations specialise in producing goods or services for which they have comparative advantage or absolute advantage? Why?
4. What is the law of diminishing returns? Why the returns will diminish eventually? Please explain with examples.
