Started on Tuesday, 31 August 2022, 1:02 PM
State Finished
Completed on Tuesday, 31 August 2022, 1:49 PM
Time taken 47 mins
Marks 40.00/40.00
Grade 100.00 out of 100.00%
BOOKTOK ACADEMY
ECS1500 ASSIGNMENT 2
SEMESTER 2 (TWO) - 2022
100%
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8/28/22, 10:38 AM Assessment 2: Attempt review
Question 2
Correct
Mark 2.00 out of 2.00
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Assume that desktops and laptops are substitutes. Which of the following will lead to a decrease in the demand for desktops?
Dashboard / My courses / ECS1500-22-S2 / Welcome to ECS1500 / Assessment 2
Select one:
a. an increase in the price of desktops
b. union action that arises in the laptop-producing industry and a simultaneous increase in consumer incomes
c. an increase in the number of sellers of laptops
d. an increase in immigration
Your answer is correct.
An increase in the number of sellers of laptops will increase supply of laptops and thus result in a rightward shift of the supply curve of
laptops. This will result in a decrease in the price of laptops. As laptops and desktops are substitutes, and laptops are now relatively cheaper,
this will result in a decrease in the demand for desktops, i.e. a leftward shift of the demand curve for desktops.
An increase in immigration can be expected to increase the size of the population, and therefore the demand for most products can be
expected to increase. The demand for desktops will most likely also increase.
An increase in the price of desktops will result in a decrease in the quantity demanded of desktops, i.e. an upward movement along the
demand curve for desktops. It will, however, not affect the position of the demand curve for desktops.
Union action that arises in the laptop-producing industry will most likely result in a decrease in supply in the laptop industry. This will
increase the price of laptops and therefore the quantity demanded of laptops will decrease. As laptops and desktops are substitutes, the
demand for desktops will increase. An increase in consumer income will result in an increase in demand for all normal products, therefore
most likely also an increase in demand for desktops. The combined effect of these two events will therefore be an increase in the demand for
desktops.
The correct answer is: an increase in the number of sellers of laptops
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8/28/22, 10:38 AM Assessment 2: Attempt review
Question 3
Correct
Mark 2.00 out of 2.00
MENU
The question is based on the following diagram, which shows the market for diamonds in a certain country:
Dashboard / My courses / ECS1500-22-S2 / Welcome to ECS1500 / Assessment 2
Which of the following can illustrate an improvement in technology that results in more diamonds being found for the same input costs?
Select one:
a. C to E
b. A to C
c. E to A
d. B to A
Your answer is correct.
An improvement in technology that results in more diamonds being found at the same input cost will result in an increase in the supply of
diamonds at every price level. This is illustrated by a rightward shift of the supply curve, for example, from S2 to S1 in the diagram. The
movement from point A to point C is due to a rightward shift of the supply curve, from S2 to S1.
The movement from point B to point A takes place along the same supply curve S2, while the movement from point C to point E takes place
along the same supply curve S1. If we stay on the same supply curve, the only variable that changes is the price level. Thus, a movement
along the same supply curve does not indicate an increase in supply, but a change in the price level.
The movement from point E to point A is due to a decrease in supply (illustrated by a shift of the supply curve from S1 to S2) combined with
a decrease in demand (illustrated by a shift of the demand curve from D2 to D1). An improvement in technology results only in an increase in
supply.
The correct answer is: A to C
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State Finished
Completed on Tuesday, 31 August 2022, 1:49 PM
Time taken 47 mins
Marks 40.00/40.00
Grade 100.00 out of 100.00%
BOOKTOK ACADEMY
ECS1500 ASSIGNMENT 2
SEMESTER 2 (TWO) - 2022
100%
, Stuvia.com - The study-notes marketplace
8/28/22, 10:38 AM Assessment 2: Attempt review
Question 2
Correct
Mark 2.00 out of 2.00
MENU
Assume that desktops and laptops are substitutes. Which of the following will lead to a decrease in the demand for desktops?
Dashboard / My courses / ECS1500-22-S2 / Welcome to ECS1500 / Assessment 2
Select one:
a. an increase in the price of desktops
b. union action that arises in the laptop-producing industry and a simultaneous increase in consumer incomes
c. an increase in the number of sellers of laptops
d. an increase in immigration
Your answer is correct.
An increase in the number of sellers of laptops will increase supply of laptops and thus result in a rightward shift of the supply curve of
laptops. This will result in a decrease in the price of laptops. As laptops and desktops are substitutes, and laptops are now relatively cheaper,
this will result in a decrease in the demand for desktops, i.e. a leftward shift of the demand curve for desktops.
An increase in immigration can be expected to increase the size of the population, and therefore the demand for most products can be
expected to increase. The demand for desktops will most likely also increase.
An increase in the price of desktops will result in a decrease in the quantity demanded of desktops, i.e. an upward movement along the
demand curve for desktops. It will, however, not affect the position of the demand curve for desktops.
Union action that arises in the laptop-producing industry will most likely result in a decrease in supply in the laptop industry. This will
increase the price of laptops and therefore the quantity demanded of laptops will decrease. As laptops and desktops are substitutes, the
demand for desktops will increase. An increase in consumer income will result in an increase in demand for all normal products, therefore
most likely also an increase in demand for desktops. The combined effect of these two events will therefore be an increase in the demand for
desktops.
The correct answer is: an increase in the number of sellers of laptops
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8/28/22, 10:38 AM Assessment 2: Attempt review
Question 3
Correct
Mark 2.00 out of 2.00
MENU
The question is based on the following diagram, which shows the market for diamonds in a certain country:
Dashboard / My courses / ECS1500-22-S2 / Welcome to ECS1500 / Assessment 2
Which of the following can illustrate an improvement in technology that results in more diamonds being found for the same input costs?
Select one:
a. C to E
b. A to C
c. E to A
d. B to A
Your answer is correct.
An improvement in technology that results in more diamonds being found at the same input cost will result in an increase in the supply of
diamonds at every price level. This is illustrated by a rightward shift of the supply curve, for example, from S2 to S1 in the diagram. The
movement from point A to point C is due to a rightward shift of the supply curve, from S2 to S1.
The movement from point B to point A takes place along the same supply curve S2, while the movement from point C to point E takes place
along the same supply curve S1. If we stay on the same supply curve, the only variable that changes is the price level. Thus, a movement
along the same supply curve does not indicate an increase in supply, but a change in the price level.
The movement from point E to point A is due to a decrease in supply (illustrated by a shift of the supply curve from S1 to S2) combined with
a decrease in demand (illustrated by a shift of the demand curve from D2 to D1). An improvement in technology results only in an increase in
supply.
The correct answer is: A to C
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