Started on Wednesday, 10 April 2024, 1:34 PM
State Finished
Completed on Wednesday, 10 April 2024, 2:11 PM
Time taken 36 mins 51 secs
Marks 27.50/30.00
Grade 91.67 out of 100.00
Question 1
Complete
Mark 1.00 out of 1.00
Consider the following demand and supply functions:
Demand: Qd = 300 – 15P.
Supply: Qs = –150 + 60P.
What is the equilibrium price and output?
a. P = R3.33 and Q = 200.
b. P = R6 and Q = 210.
c. P = R2 and Q = 540.
d. P = R10 and Q = 150.
Question 2
Complete
Mark 1.00 out of 1.00
Consider the following demand and supply functions:
Demand: Qd = 400 – 40P.
Supply: Qs = –100 + 60P.
What is the equilibrium price and output?
a. represent market basket combinations that exhaust the income
available.
b. are attainable with the given income.
c. are equally desirable.
d. None of the options is correct.
Question 4
Complete
Mark 1.00 out of 1.00
Imagine that there are only three consumers in a particular market for apples:
Andrew, John and Michael. We are interested in the demand for apples. The
demand equations for the three consumers are as follows:
Andrew: Qd = 10 - 2P
John: Qd= 8 - P
Michael: Qd = 14 - 2P
If the price of apples is R3/kg, how much would the demand for the market as a
whole be?
A difference between luxuries and necessities is that….
a. luxuries are not purchased by low-income people.
b. all necessities are inferior goods and all luxuries are normal goods.
c. the percentage of income spent on luxuries increases as income rises,
whereas the percentage of income spent on necessities falls as income
increases.
d. rich people buy fewer necessities than do poor people.
Question 6
Complete
Mark 1.00 out of 1.00
What is the marginal product and average product of labour when 4 labourers are
employed?
a. 7 and 6.5
b. 4 and 6.5
c. 5 and 6.5
d. 0 and 3.8
Question 7
Complete
Mark 1.00 out of 1.00
When more and more consumers decide to purchase an iPhone as the number of
iPhones users increase, this can be used to explain the snob effect.
Consider two goods, X and Y. The price of product X increases from R100 to
R120 per unit. As a result, the quantity demanded of product Y decreases from
1000 to 800 units.
Calculate the cross-price elasticity of demand, using the arc elasticity formula,
given the information above.
a. -0.81
b. -1.22
c. -0.0002
d. -1
Question 9
Complete
Mark 1.00 out of 1.00
The substitution effect of a price decrease for a good with a normal difference
curve
pattern is graphed by …
a. drawing a new budget line parallel to the initial budget line but tangent to
the
indifferent curve attained at the new price.
b. doing none of the above because the substitution effect cannot be
graphed.
c. drawing a new budget line tangent to the indifference curve attained at
the new
price.
d. drawing a new budget line tangent to the original indifference curve but
at the slope
of the new price of the good.
4 of 13 2024/04/10, 14
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ExpertAcademy. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R85,00. You're not tied to anything after your purchase.
