Question

1) The markets for cars and tyres are closely related. The five largest tyre firms used to make 66% of all

tyres. The entry of more than 250 Chinese firms has reduced the global market share of the largest five firms

to less than 50%. This also changed the price elasticity of demand (PED) for individual firms’ tyres. Some of

these firms are state-owned enterprises and some are in the private sector

(a) Explain what effect more firms producing tyres would have on the PED of individual firms’

tyres. [4]

(b) Analyse, using a demand and supply diagram, the effect of an increase in demand for cars on the market

for tyres. [6]

(c) State the formula used to calculate PED. [2]

(d) Explain two reasons why the price of sugar may fall. [4]

(e) Explain two influences on whether demand for a product is price-elastic or price-inelastic. [4]. (please give answers for all of them)​

Answer 1

Answer:

Hy mate please ask 1 question at 1 time we can't answer them all together