Based on the above article, answer the following questions.

a. Explain law of demand.

(2 marks)

b. List two (2) reasons why the price of palm oil is forecasted to increase by the first

quarter of 2010.

(2 marks)

c. Based on the reasons that you gave in (b), using a diagram show the situation in the

market that causes the price of palm oil to increase in the future.

(2 marks)

d. What will be the effect of an increase in the price of palm oil on the demand for soya

oil? State the relationship between two products.

(2 marks)

e. With the aid of a diagram, show the relationship between palm oil and soya oil.