ECS2601 - ASSESSMENT 1 - EXPECTED QUESTIONS AND ANSWERS - 2024

ECS2601 – ASSESSMENT 1 – EXPECTED QUESTIONS AND ANSWERS - 2024




Assessment 1
Started on Monday, 28 August 2023,
State Finished
Completed on Monday, 28 August 2023,
Time taken
Marks 18.00/20.00
Grade 90.00 out of 100.00


Question 1
An indifference curve can be upward sloping.

Select one:

True

False



Question 2
Assuming everything else remains unchanged, the equilibrium price of biltong
will decrease if …



a.
there is a shortage of biltong.



b.
the price of coke, a complement, increases.



c.
the supply of biltong decreases.



d.
the price of peanuts, a substitute, increases.

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, ECS2601 – ASSESSMENT 1 – EXPECTED QUESTIONS AND ANSWERS - 2024


Question 3
Consider the following demand and supply functions:

Demand: Qd = 400 - 40P.

Supply: Qs = -100 + 60P.

What is the equilibrium price and output?



a.
P = R3 and Q = 80.



b.
P = R15 and Q = 800.



c.
P = R10 and Q = 300.



d.
P = R5 and Q = 200.



Question 4
If pizza and hamburgers were substitutes, a decrease drop in the price of pizza
would increase the demand for hamburgers.

Select one:

True

False



Question 5
An increase in the price of a product from R25,00 to R35,00 causes the
quantity demanded to decrease from 1 400 to 1 000 units. Using the arc
elasticity of demand, the price elasticity of demand is ………………


2