ECS1501 ASSIGNMENT 3 2021

ECS1501 ASSIGNMENT 3 2021 If a maximum price is set below the equilibrium price, [1] there will be a shortage. [2] sellers will find it difficult to find willing buyers. [3] market equilibrium will occur despite government regulation. [4] all buyers will be able to purchase their desired quantities. When government imposes price ceilings and floors in markets [1] shortages and surpluses are eliminated. [2] both buyers and sellers are better off. [3] price no longer serves as a rationing mechanism. [4] efficiency in the market is increased. 3.3 Which of the following is an example of a price ceiling? [1] rent control [2] minimum wages [3] government price supports for agricultural products [4] excise duties on wine 3.4 If the government adopts a price floor policy for fish at a floor of R53/kg, [1] both price and quantity sold will rise. [2] both price and quantity sold will fall. [3] price will fall and quantity will rise. [4] price and quantity will stay the same. 3.5 If the total revenue from the sales of a good rises by 10% when its price is increased by 10%, the demand for the good must [1] be perfectly price elastic. [2] be perfectly price inelastic. [3] be unitary elastic. [4] have a price elasticity of -1 3.6 If the price elasticity of demand for Omo washing powder is 3.0, a drop in price leads to a rise in the quantity demanded. [1] 12 per cent; 36 per cent [2] 12 per cent; 4 per cent [3] R1 000; 3000-unit [4] R1 000 CONTINUED.......DOWNLOAD FOR BEST SCORES