Assessment 6
Started on Monday, 5 August 2024,
State Finished
Completed on Monday, 5 August 2024,
Time taken
Marks 12.00/12.00
Grade 100.00 out of 100.00
Question 1
I confirm
that this assessment will be my own individual work;
that I will not communicate with anyone else in any way during the completion of this
assessment;
that I will not cheat in any way in completing and submitting this assessment.
I confirm.
I do not confirm.
Question 2
Which one of the following statements with regards to price elasticity is correct?
If you know what the price elasticity of petrol is, you will know how sensitive or
responsive the quantity demanded of petrol is to a change in the price of petrol.
If the price elasticity of good X is greater than the price elasticity of good Y, it means
that households are more responsive or sensitive to a change in the price of good Y
than to a change in the price of good X.
The price elasticity of demand provides us with a measure of how sensitive or
responsive the price of a good or service is to a change in demand.
If you know what the price elasticity of petrol is, all you will be able to say is that an
increase in the price of petrol will reduce the quantity of petrol demanded.
Feedback
This question assessed your definition of the price elasticity of demand: “The price
elasticity of demand is the percentage change in quantity demanded if the price of
the product changes by one per cent”. In other words, price elasticity indicates how
sensitive or responsive quantity demanded is to a change in price.
Question 3
What happens to the price elasticity of the demand for coal when the quantity of coal
demanded is measured in kilograms instead of tons?
The price elasticity will be more elastic.
The price elasticity will be undefined.
The price elasticity will be less elastic.
The price elasticity will be neither more nor less elastic.
Feedback
Price elasticity measures the responsiveness of the quantity demanded of a good
(coal) to changes in the price of the good (coal). The only difference measuring coal
2
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