Mancosa Fundamentals of economics Revision

Exam: 2025 - Revision
Fundamentals of Economics
Ms. L.NP Mzizi

,Question 1
You are interested in buying a used car and see one priced at R80,000 a
second-hand car dealer. You decide that you are not willing to pay R80,0
but only R75,000. The salesman is eager to sell the car and, after estimat
your willingness to pay, you settle on a price of R73,000.

What is your consumer surplus for this car?

A. R7,000.
B. R2,000.
C. R50,000.
D. D. R3,000.
Sol. 75k-73k=R2000

, Question 2
In South Africa, the price of cooking oil has risen by over 50% in the past year. The national food
price index shows that overall food prices continue to increase. The organization measuring
prices uses a food basket consisting of 44 items. Recent increases in cooking oil prices have been
largely driven by the ongoing conflict between Russia and Ukraine, which has also caused petrol
prices to rise to approximately R24 per litre.

If the price of cooking oil rises above the market equilibrium, this is most likely to:

A. Shift the cooking oil supply curve to the right.
B. Shift the cooking oil demand curve to the right.
C. Cause a surplus of cooking oil.
D. Cause a shortage of cooking oil.