Question 1

1. Draw a demand and supply graph for the market for Dell notebook computers

[5 marks]

1. A news report is released about the negative health effects of using notebook computers. Consumers are concerned. Explain the effects on the market price and quantities of Dell notebook computers?

[5 marks]

1. More new brands of notebook computers are now available to consumers. Explain the effects on the market price and quantities of Dell notebook computers?

[5 marks]

1. New technology enables computers to be made at lower cost. Explain the effects on the market price and quantities of Dell notebook computers?

[5 marks]

Question 2

Assess the effects of

1. Price ceiling

[20 marks]

1. Price floor

[20 marks]

(Hint: Government policies and intervention)

Question 3

1. Describe the main assumptions of perfect competition and monopoly

[20 marks]

1. Discuss the main features of oligopoly market

[20 marks]