ECS1501 ASSIGNMENT 7 SEMESTER 2 OF 2022

ECS1501: ASSIGNMENT 7 SEMESTER 2 OF 2022


Given the demand for a product as Qd = 30 - 6P and the supply is given as Qs = 18 +
2P. You are told equilibrium is obtained at the point where Qd = Qs. The equilibrium
price of the product is Answer and the equilibrium quantity is Answer .

Equilibrium price = 1.5; equilibrium quantity = 21




Which diagram shows how this will affect the market for apples?


Diagram D

Diagram B

Diagram A

Diagram C



If goods A and B are substitutes, a decrease in the price of good B will


increase the demand for good A.

increase the demand for good B and decrease the demand for good A.

decrease the demand for good A.

increase the demand for good B.
Clear my choice

, Good X and good Y are related. If the price of good X increases and the demand for
good Y shifts left, these goods are


inferior.

complements.

normal.

substitutes.



Suppose the equilibrium price of Poppy’s Popcorn is R5 and the equilibrium quantity is
150 packets. If the price of Poppy’s Popcorn is R12


there will be an excess demand for Poppy’s Popcorn.

the quantity supplied will be less than 150 packets.

there will be an excess supply of Poppy’s Popcorn.

the quantity demanded will be greater than 150 packets.
Clear my choice


Assume that maize is an input in the production of beef sausages but not in the
production of pork sausages. Further, beef and pork sausages are substitutes in
consumption. A decrease in the price of maize will _____ the supply of beef sausages and
_____ the demand for pork sausages.


increase; increase

increase; decrease

decrease; increase

decrease; decrease
Clear my choice