Question 1 ) Explain how economic growth is different from economic development and whether economic growth is always beneficial to a country. [12 marks]

QUESTION 2 [25 MARKS] The following table refers to the demand and supply conditions of beef in a given market in a given period of time. Price of Beef per kg ($) Demand for Beef (kg) Supply of Beef (kg) 40 15 W N 25 25 15 30 10 35 5 5 40 (a) Use the information above to plot a fully labeled diagram of demand and supply curves and clearly indicate the equilibrium price and quantity of beef. [5 marks] (b) If price increases from $4 to $5, calculate price elasticity of demand. [5 marks] (c) If demand increases by 15 kg at each price, calculate the new equilibrium price and quantity of beef. [5 marks] (d) When income increases by 30%, demand for beef increases by 10%. Moreover, beef is said to be a "normal good". (i) What do you understand by Income Elasticity of Demand? [3 marks] (i) Use the concept of Income Elasticity of Demand to explain why beef is said to be a "normal good". [3 marks] (e) Consumers consider mutton to be a substitute for beef. Describe the relationship between the price of mutton and demand for beef, and comment on the Cross Elasticity of Demand for Beef. [4 marks] Page 3 of 5