Explain, with the help of diagrams, (i) how the market for beer will be affected by a tax on hard liquor such as whisky and vodka, (ii) how the market for oranges will be affected if farmers can sell lemons at a higher price, (iii) how the demand for red wine will be affected if its price decreases.

Draw a diagram to illustrate $3$ rd degree price discrimination in airlines, explaining when the prices charged in the two markets you chose will differ more.

Explain what price, income and cross elasticities of demand measure.

Explain the conditions that need to be satisfied for a firm to successfully adopt price discrimination.

Discuss, using diagrams wherever appropriate, the significance of price elasticity of demand for both firms and the government.

Discuss three policies that governments might implement to reduce negative externalities associated with the environment.

Examine the view that governments can best reduce smoking (or, alcohol consumption) by substantially increasing taxes on cigarettes.

Discuss the implications of direct provision of public goods by governments.

Explain why negative externalities are an example of market failure.

To what extent can the imposition of carbon taxes encourage sustainability.

Explain the role of price elasticity of demand and crosselasticity of demand for businesses making decisions.

Using an appropriate diagram, compare and contrast the equilibrium positions of a profit maximizing monopoly firm and a revenue maximizing monopoly firm.

Distinguish between marginal private and social costs as well as between marginal private and social benefits.

Using examples and an appropriate diagram, explain the meaning of the term 'natural monopoly'.