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Instruction wordsClick on the highlighted text to see the comments. Below are some meanings of directive words. See if you can match the correct word with its meaning.
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Correct Answers:
Analyse: Meaning 2
Explain: Meaning 3
Identify: Meaning 1
Check your answers above and look at the wording of the assignment task below where the directive words and phrases have been bolded.
Both illicit and legal drugs are often cited as the classic example of goods which are very price inelastic.
Explain why this might be the case.
Draw a demand curve illustrating price inelastic demand and explain how the curve relates to the definition of price inelasticity of demand.
Use the diagram to explain how the inelastic demand has implications for pharmaceutical company price setting and revenue.
Word limit: 750