Section B: Short answer questions (20 Marks) AmAT ALL questions. Record your amowners in the answer booklet Question Bl (5 marks) Suppose the following demand schedule for a product "" (it does not matter what the product is). Price Quantity demanded Quantity demanded Income = $15,000 Income = $20,000 40 50 45 14 24 20 20 22 12 Required: A] Define and provide the formula for the price elasticity of demand. Calculate the price elasticity of demand as the price of product X increases from $10 to $14 if income is $15, 000. Explain your result. (2 5 marks] Define and provide the formula for the income elasticity of demand? Calculate the income elasticity of demand as income increases from $15,000 to $20, 000 if the price is $18. Explain your result. (2.5 marks) Question B2 (5 marks) Consider the market for apples in the situation where the price of bankmes increases. Required: What would happen to the demand curve for apples and why? Is there a shortage or a surplus because of the shift in the demand curve? (2 marks) How does the change in the demand curve for apples affect the price and quantity of apples? Explain why and how these changes occur. (2 marks) Draw the graph clearly identifying the shortage or surplus. (1 mark)