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Explain the type of pricing strategy that you as the manager of a company would implement
for Good X and Good Y with the following price elasticity of demand co efficients. Use diagrams to motivate your answer.
a) . Good X: 2.3 (10)
b) . Good Y: 0.6 (10)
QUESTION TWO 
2.1 Explain the kinked demand curve theory of an oligopoly. Include in your answer a
discussion of a contemporary oligopoly. (13)
2.2 Discuss and motivate whether the following market structures can engage in price discrimination.
2.2.1 Perfect competition (6)
2.2.2 Monopoly (6)
QUESTION THREE 
Questions 3.1 to 3.3 relate to the diagram below.
POSTGRADUATE DIPLOMA IN MANAGEMENT – ACADEMIC AND ASSESSMENT CALENDAR
3.1 Choose a contemporary business and discuss two factors that bring about the
economic concept illustrated in Panel A for that business. (14)
3.2 Explain the meaning of the LAC curve in Panel C. (6)
QUESTION FOUR 
4.1 Assume the aggregate demand of an economy is rising at 3%, but its productive
capacity is only rising at 2%. Discuss the type of inflation this would lead to. Use a diagram to motivate your answer. (20)
4.2 Explain how fiscal policy can be implemented if an economy is in the downswing of a
business cycle. (15)
This is a research based assignment and requires evidence of research.
END OF ECONOMICS ASSIGNMENT