(a) GHJ Co is a manufacturing company that makes one product. The production process is labour intensive and as a result the product is highly specialised. GHJ Co also provides its customers with maintenance and after sales service. Department W use

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• 1 If the absolute value of the price elasticity of demand for dry white wine is greater than one, a

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  A A more than proportional decrease in the quantity of dry white wine purchased

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  C A less than proportional increase in the quantity of dry white wine purchased

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• 2 Consumer surplus is: A The excess between what consumers are prepared to pay for a good or servic

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  B The indirect tax producers pay on a good or service

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• 3Using the point method, what is the price elasticity of demand of product X as price falls from its

  Using the point method, what is the price elasticity of demand of product X as price falls from its current

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  A 0.5

  B 1

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• 4The income elasticity of demand for a product is high. This means that: A Sales will fall only slig

  The income elasticity of demand for a product is high. This means that:

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  (i) Which business should we be in?

  (ii) Should we specialise in a profitable product?

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  B Managers are able to take a wider view

  C Avoids overburdening top managers

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• 6 (a) The following four components of an organisation were identified by Mintzberg A Operating core

   (a) The following four components of an organisation were identified by Mintzberg

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