1.What leads to a decrease in the quantity demanded of a good or service? (6 marks)

2.What is the difference between a normal good and an inferior good? Give an example of each. (10 marks)

3.In early 2009 the price of computer memory chips rose. In a demand and supply model, shifts in what curve(s) could have brought about the higher price? (8 marks)

4.Last year a very severe storm hit the north parts of Namibia. Electric poles were down and no one had power for days. It was reported that the price of gasoline heaters skyrocketed and the number purchased increased during this time. Using a supply and demand diagram, show the impact of the ice storm on the market for kerosene heaters. (8 marks)

5."The price elasticity of demand is a measure of how sensitive demanders are to changes in the price of a product." Is this statement true or false? Explain your answer (10 marks)

6.What are the differences between public goods and private goods? (10 marks)