1.

a. Discuss the salient characteristics of the market structures of perfect competition,

monopoly, monopolistic competition, and oligopoly.
(12 Marks)
b. Discuss to which market structure the below industries most accurately fit into. And
justify your answers in compared to above discussed characteristics.
 Super Market Chains
 Coffee Shops
 Video Conferencing Apps
 Fresh Juices

(08 Marks)
(Total 20 Marks)
2.
a. What is Elasticity?
(02 Marks)
b. Briefly define what price elasticity of demand is and how it can be calculated with a
suitable example?
(04 Marks)
c. Discuss four determinants of price elasticity of demand with examples.
(08 Marks)
d. A study finds that the demand for Coca Cola is elastic. Using your knowledge of
determinants of price elasticity of demand, explain any three possible reasons for the
demand for Coca Cola to be elastic.
(06 Marks)

(Total 20 Marks)