Identify and explain the factors that determine the price elasticity of demand

Question 1 (10 marks)

Identify and explain the factors that determine the price elasticity of demand and provide illustrative examples, based on media reports, of the impact of each factor on the demand for a good or service.

Question 2 (10 marks)

Will the Australian economy benefit from President Trump’s protectionist policies? Provide illustrative examples from media reports to support your answer and ensure that you consider the concept of comparative advantage.