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Summary ECS1500 ASSIGNMENT 1,2 AND 3
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ECS1500 ASSIGNMENT 1,2 AND 3 2023 SEMESTER 2
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THANDEKA SNOTHILE ZULU
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UNISA
2023
Semester 1
ECS1500-23-S1
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Assessment 2
Started on Thursday, 30 March 2023, 6:35 PM
State Finished
Completed on Thursday, 30 March 2023, 7:06 PM
Time taken 31 mins 15 secs
Marks 26.00/40.00
Grade 65.00 out of 100.00
Feedback Good work! You have passed this assessment. However, if this is not your third att
reached yet, you can revise your study material and submit this assessment again, i
Please check the following table so assist you to know which sections of the study
If you answered these questions incorrectly Please revise this section of the stu
material
Questions 1 to 5 Learning Unit 3
Questions 6 to 10 Learning Unit 4
, Questions 11 to 12 Learning unit 5
Questions 13 to 14 Learning unit 5, specifically section
Questions 15 to 16 Learning unit 5, specifically section
Questions 17 to 18 Learning unit 5, specifically section
Questions 19 to 20 Learning unit 5, specifically section
Question 1
Correct
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Question text
Market clearing implies a situation whereby the supply curve crosses the y-axis.
Select one:
a.
True
b.
False
Feedback
Your answer is correct.
The statement is false. Market clearing (where the quantity demanded equals the quantity
supplied) refers to a situation where demand and supply curves intersect, thus where the
quantity demanded is equal to the quantity supply so that there is not excess supply or
excess demand.
The correct answer is: False
Question 2
Correct
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,Question text
When the market experiences … , … to restore equilibrium in the market.
[1] excess supply; price will decline
[2] excess supply; price will rise
[3] excess demand; price will rise
[4] excess demand; price will decline
Select one:
a.
only 1 and 3 are correct
b.
only 2 and 3 are correct
c.
only 2 and 4 are correct.
d.
only 1 and 4 are correct
Feedback
Your answer is correct.
In the case of market disequilibrium that is caused by excess supply, (the quantity that is
being produced exceeds the quantity that is demanded), the excess supply will put
downward pressure on prices until equilibrium will be restored. Therefore option [1] is
correct and option [2] is incorrect.
Excess demand defines a situation whereby the economy is in disequilibrium and as a result
quantity demanded exceeds quantity supplied, in other words consumers want more than
what is being produced. The excess demand leads to an upward pressure in prices and thus
equilibrium will be restored. Therefore option [3] is correct and option [4] is incorrect.
The correct answer is: only 1 and 3 are correct
Question 3
Correct
Mark 2.00 out of 2.00
, Flag question
Question text
When we derive the demand curve for diamonds we make the ceteris paribus assumption.
Taking this into account, which of the following can change along the same demand curve?
[1] price of diamonds
[2] income level of consumers
[3] availability of substitutes for diamonds
[4] quantity of diamonds
Select one:
a.
only options [2] and [3] are correct
b.
only options [1] and [2] are correct
c.
all the options are correct
d.
only options [1] and [4] are correct
Feedback
Your answer is correct.
When we derive the demand curve for a good, we assume that all other factors that affect
demand, except for the price level, do not change. That is what the ceteris paribus
assumption refers to in the case of the derivation of the demand curve. Due to the change
in the price level, there can be a change in the quantity demanded. Therefore the only two
factors that can change along the same demand curve are the price level and the quantity
demanded.
The correct options will therefore be [1] and [4].
When the income level of consumers changes, the quantity demanded of diamonds will
change for every price level. The change in income will therefore be illustrated by a
movement of the demand curve, for example from D to D' in the following diagram:
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