Think of ten different products or services and estimate roughly how many firms there are in the market. You will need to decide whether ‘the market’ is a local one, a national one or an international...

Think of ten different products or services and estimate roughly how many firms there are in the market. You will need to decide whether ‘the market’ is a local one, a national one or an international one. In what ways do the firms compete in each of the cases you have identified? Imagine there are two types of potential customer for jam sold by a small food shop. One is the person who has just run out and wants some now. The other is the person who looks in the cupboard, sees that the pot of jam is less than half full and thinks, ‘I will soon need some more.’ How will the price elasticity of demand differ between these two customers?