(a) Study the statements given below and state whether demand will be elastic or inelastic citing reasons for your answer.
1. Demand for cigarettes by a habitual smoker.
2. A consumer postpones the purchase of a refrigerator till the off-season sale.
(b) State two differences between a tax and a fee.
(c) In what type of tax, shifting of the tax burden is possible? Explain using an example.
(d) What is meant by progressive tax? Give an example.