Please answer the following questions based on extracts 1,2 and 3. (a) Using a demand-and-supply diagram, analyse in what ways counterfeit products might pose a threat to Nike's market share. [10 marks] (b) What can be deduced from Extract 1 about the (i) price elasticity of demand for sportswear [2 marks] (ii) income elasticity of demand for counterfeit products [2 marks] (iii) cross elasticity of demand for sportswear with respect to fitness centre membership fees? [2 marks] (0) Using a diagram, explain two reasons for which 'scale matters' (Extract 2) in the sportswear industry and suggest two reasons for which merger and acquisition should not, however, be necessarily encouraged. [12 marks] (d) Explain whether abnormal profit would be a feature for each sportswear company in the long run if the industry is perfectly competitive. [10 marks] (e) In the sportswear market different retailers are under pressure 'to cut prices in the face of more transparent competition' (Extract 3). Does this mean that the sportswear industry is perfectly competitive? [12 marks] ~End of Questions