This economics assignment delves into four core economic theories: price elasticity of demand, market theory, economic growth, and the theory of inflation. The assignment begins by exploring price elasticity, advising a pharmaceutical company on pricing strategies for a new drug based on different elasticity values (1.4, 0.6, and 1). The second question analyzes market theory, focusing on the dynamics of perfect competition, the impact of economic profits and losses, and the effects of new firms entering or exiting the market in the long run. The third question examines economic growth theory, highlighting the roles of physical capital, human capital, and technology in driving economic growth, with a focus on GDP per capita and comparisons between high, middle, and low-income countries. Finally, the assignment concludes with an analysis of inflation, explaining how the consumer price index (CPI) is calculated and used to measure inflation rates over time. The student provides detailed explanations, supporting evidence, and diagrams to illustrate these economic concepts.