SEMESTER 1
COMPULSORY ASSIGNMENT 01 LEARNING UNITS 1 TO 7
This assignment contributes 50% towards your semester mark.
Questions 1 to 20 of the assignment are MULTIPLE-CHOICE questions.
In each question, select the most correct option.
Answer all questions on a mark-reading sheet
1. What affects the price elasticity of demand for a good?
[1] duration for demand decision.
[2] substitutability of resources.
[3] time elapsed since the income change.
[4] the closeness of substitutes.
2. The price elasticity of demand is inelastic if…
[1] income elasticity of demand is negative.
[2] price elasticity of demand is positive but less than 1.
[3] price elasticity of demand is negative.
[4] price elasticity of demand is positive but greater than 1.
3. John owns a bread bakery. When he increases the price of a loaf of bread from R10 to
R12, the percentage in the quantity demanded is 5%. Calculate the price elasticity of
demand for bread.
[1] 0.275
[2] 0.050
[3] 0.300
[4] 0.250
4. Yonela consumes cheese cake and tea. When the price of cheese cake increases from
R155 to R160, the quantity demand of teabags decreases from 10 to 6. Then we can say
that…
[1] cheesecake and tea are substitutes.
[2] cheesecake and tea are unrelated.
[3] cheesecake and tea are compliments.
[4] cheesecake and tea are normal goods.
5. Given that Rumbi’s budget line is and the price of tea is R10. What is
This study source was downloaded by 100000840403022 from CourseHero.com on 03-04-2022 15:02:24 GMT -06:00
https://www.coursehero.com/file/94149161/ECS-2601-assignment-1pdf/
, Rumbi’s income and the price of cake?
[1] Income = R250 and Price of cake = R40.
[2] Income = R100 and Price of cake = R10.
[3] Income = R250 and Price of cake = R5.
[4] Income = R100 and Price of cake = R40.
6. The marginal utility per rand of good A exceeds the marginal utility per rand of good B.
Which of the following statement(s) is/are correct?
[1] To establish equilibrium, the one must consume more of good A.
[2] To establish equilibrium, one must consume more of good B.
[3] This means the consumer is consuming more of good A and less of good B.
[4] One must consume less of both good A and good B.
Use the diagram below to answer questions 7 and 8.
7. On the price of a pizza is R20 and the price of a pie is R10. What is the new price of
pizza reflected in ?
[1] R20.
[2] R40.
[3] R50.
[4] R12.
8. Which of the following statement(s) is/are correct about the pizza and pie above?
[1] Pizza and pie are compliment goods.
[2] Pizza and pie are inferior goods.
[3] Pizza and pie are normal goods.
[4] Pizza and pie are perfect substitutes.
Use the information below to answer questions 9 and 10 below.
The market demand and supply for renting apartments in the Rosebank area is given as:
Demand: P= 12 000 – 5Qd
Supply: P= 800+3Qs
9. Calculate the equilibrium quantity.
[1] 2 400.
[2] 1 100.
[3] 4 100.
This study source was downloaded by 100000840403022 from CourseHero.com on 03-04-2022 15:02:24 GMT -06:00
https://www.coursehero.com/file/94149161/ECS-2601-assignment-1pdf/
COMPULSORY ASSIGNMENT 01 LEARNING UNITS 1 TO 7
This assignment contributes 50% towards your semester mark.
Questions 1 to 20 of the assignment are MULTIPLE-CHOICE questions.
In each question, select the most correct option.
Answer all questions on a mark-reading sheet
1. What affects the price elasticity of demand for a good?
[1] duration for demand decision.
[2] substitutability of resources.
[3] time elapsed since the income change.
[4] the closeness of substitutes.
2. The price elasticity of demand is inelastic if…
[1] income elasticity of demand is negative.
[2] price elasticity of demand is positive but less than 1.
[3] price elasticity of demand is negative.
[4] price elasticity of demand is positive but greater than 1.
3. John owns a bread bakery. When he increases the price of a loaf of bread from R10 to
R12, the percentage in the quantity demanded is 5%. Calculate the price elasticity of
demand for bread.
[1] 0.275
[2] 0.050
[3] 0.300
[4] 0.250
4. Yonela consumes cheese cake and tea. When the price of cheese cake increases from
R155 to R160, the quantity demand of teabags decreases from 10 to 6. Then we can say
that…
[1] cheesecake and tea are substitutes.
[2] cheesecake and tea are unrelated.
[3] cheesecake and tea are compliments.
[4] cheesecake and tea are normal goods.
5. Given that Rumbi’s budget line is and the price of tea is R10. What is
This study source was downloaded by 100000840403022 from CourseHero.com on 03-04-2022 15:02:24 GMT -06:00
https://www.coursehero.com/file/94149161/ECS-2601-assignment-1pdf/
, Rumbi’s income and the price of cake?
[1] Income = R250 and Price of cake = R40.
[2] Income = R100 and Price of cake = R10.
[3] Income = R250 and Price of cake = R5.
[4] Income = R100 and Price of cake = R40.
6. The marginal utility per rand of good A exceeds the marginal utility per rand of good B.
Which of the following statement(s) is/are correct?
[1] To establish equilibrium, the one must consume more of good A.
[2] To establish equilibrium, one must consume more of good B.
[3] This means the consumer is consuming more of good A and less of good B.
[4] One must consume less of both good A and good B.
Use the diagram below to answer questions 7 and 8.
7. On the price of a pizza is R20 and the price of a pie is R10. What is the new price of
pizza reflected in ?
[1] R20.
[2] R40.
[3] R50.
[4] R12.
8. Which of the following statement(s) is/are correct about the pizza and pie above?
[1] Pizza and pie are compliment goods.
[2] Pizza and pie are inferior goods.
[3] Pizza and pie are normal goods.
[4] Pizza and pie are perfect substitutes.
Use the information below to answer questions 9 and 10 below.
The market demand and supply for renting apartments in the Rosebank area is given as:
Demand: P= 12 000 – 5Qd
Supply: P= 800+3Qs
9. Calculate the equilibrium quantity.
[1] 2 400.
[2] 1 100.
[3] 4 100.
This study source was downloaded by 100000840403022 from CourseHero.com on 03-04-2022 15:02:24 GMT -06:00
https://www.coursehero.com/file/94149161/ECS-2601-assignment-1pdf/
