Exam (elaborations)
ECS2601 ASSESSMENT 3 (215605) SEMESTER 2 2023 MICROECONOMICS
- Institution
- University Of South Africa (Unisa)
- Book
- Microeconomics
ECS2601 ASSESSMENT 3 (215605) SEMESTER 2 2023 MICROECONOMICS
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BMZ ACADEMYBMZ ACADEMY
@061 262 1185/068 053 8213/0717 513 144
BMZ ACADEMY 061 262 1185/068 053 8213/0717 513 144
, BMZ ACADEMY
A price increase for salt is likely to lead to a Small income effect, small substitution effect.
Select one:
True
False
Average total cost reaches a minimum where it intersects average variable cost.
Select one:
True
False
Consider the following demand and supply functions:
Demand: Qd = 300 – 15P.
Supply: Qs = –150 + 60P.
What is the equilibrium price and output?
a.
P = R2 and Q = 540.
b.
P = R10 and Q = 150.
c.
P = R6 and Q = 210.
d.
P = R3.33 and Q = 200.
Question text
Suppose the price of flour, an ingredient used to make bread, increases. Which of the
following is true regarding the price and the quantity supply of bread.
a.
There will be an increase in the price of bread and an increase in the quantity supplied.
b.
There will be an increase in the price of bread and a decrease in the quantity supplied.
c.
There will be an increase in the price of bread and no change in the quantity supplied.
d.
There will be no effect on the price of bread and quantity supplied.
If a 2 percent increase in the price of ice cream causes a 4-percent decrease in the quantity
demanded, what is the elasticity of demand?
a. -0.5
b. -2
c. 2
d.0.5
Question text
BMZ ACADEMY 061 262 1185/068 053 8213/0717 513 144
, BMZ ACADEMY
A decrease drop in the price of a product from R25,00 to R20,00 causes the
quantity demanded to increase from 1 500 to 2 000 units. Using the arc elasticity of demand,
the price elasticity of demand is … .
a.– 0.82
b.– 0.78
c. 0.77
d. – 1.29
A decrease in the price of a product from R50,00 to R40,00 causes the quantity demanded to
increase from 2 500 to 3 000 units. Using the arc elasticity of demand, the price elasticity of
demand is …
a.
0.78.
b. -0.82.
c.
-1.22.
d.
-0.69.
Given the subsistute effect and income effect of this nature. The two effects represents ...
a.
Normal good.
b.
Inferior Good.
c.
None of the options are correct.
d. Giffen Good.
Question text
BMZ ACADEMY 061 262 1185/068 053 8213/0717 513 144
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