(Solved): 1.1 Distinguish between a price floor and price ceiling using examples to motivate your answer. 1. ...

1.1 Distinguish between a price floor and price ceiling using examples to motivate your answer. 1.2 List three (3) options that a government has in order to deal with market surplus of a good/product. 1.3 Discuss how the imposition of a tax on cigarettes acts as a disincentive for individuals to purchase this item in terms of the demand-supply model. Use the diagram below to substantiate your answer. (8) 1.4 Explain two (2) factors that affect demand. (6)