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ECS2601 JUNE EXAM 2025
FOR SEMESTER 1 2025
FEND TUTORIALS
,Question 1
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The income effect of a lower price for good A …
a.
invariably leads a consumer to buy more of good A, because the combination of unchanged
money income and lower price raises that consumer's real income or purchasing power.
b.
creates a change in the good's relative price and, therefore, causes the consumer to
substitute good A in place of other goods.
c.
invariably leads a consumer to buy less of good A because the combination of unchanged
money income and lower price encourages that consumer to buy more of other goods.
d.
may lead to a larger, smaller, or even an unchanged quantity of good A demanded; it
all depends on the nature of the good itself.
Clear my choice
Question 2
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Assuming everything else remains unchanged, the equilibrium price of biltong will decrease
if …
a.
there is a shortage of biltong.
b.
the supply of biltong decreases.
c.
the price of coke, a complement, increases.
d.
the price of peanuts, a substitute, increases.
Question 3
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Which of the following goods are most likely to have a negative cross-price elasticity, ceteris
paribus?
a.
ice cream and candy in a snack shop.
b.
ECS2601 textbook and literature textbook.
ECS2601 JUNE EXAM 2025
FOR SEMESTER 1 2025
FEND TUTORIALS
,Question 1
Not yet answered
Marked out of 1.00
Flag question
Question text
The income effect of a lower price for good A …
a.
invariably leads a consumer to buy more of good A, because the combination of unchanged
money income and lower price raises that consumer's real income or purchasing power.
b.
creates a change in the good's relative price and, therefore, causes the consumer to
substitute good A in place of other goods.
c.
invariably leads a consumer to buy less of good A because the combination of unchanged
money income and lower price encourages that consumer to buy more of other goods.
d.
may lead to a larger, smaller, or even an unchanged quantity of good A demanded; it
all depends on the nature of the good itself.
Clear my choice
Question 2
, Not yet answered
Marked out of 1.00
Flag question
Question text
Assuming everything else remains unchanged, the equilibrium price of biltong will decrease
if …
a.
there is a shortage of biltong.
b.
the supply of biltong decreases.
c.
the price of coke, a complement, increases.
d.
the price of peanuts, a substitute, increases.
Question 3
Not yet answered
Marked out of 1.00
Flag question
Question text
Which of the following goods are most likely to have a negative cross-price elasticity, ceteris
paribus?
a.
ice cream and candy in a snack shop.
b.
ECS2601 textbook and literature textbook.
