ECS1500-25-Y Welcome Message Assessment 2
QUIZ
Started on Thursday, 29 May 2025, 5:30 PM
State Finished
Completed on Thursday, 29 May 2025, 6:11 PM
Time taken 41 mins 2 secs
Marks 28.00/40.00
Grade 70.00 out of 100.00
Feedback
Good work! You seem to understand the content of Learning Units 3 to 5 quite well. Please read the
feedback provided for each question carefully and make sure you agree with the explanations provided,
especially for the questions you answered incorrectly. Make sure you will not make similar mistakes in
future.
Note that you are allowed to submit 3 attempts for this assessment and that the marks for the best
attempt will contribute towards your final credits. Revise the content carefully before submitting another
attempt.
Question 1
Correct
Mark 2.00 out of 2.00
The supply of a good decreases when the price of a complement in production _____________ and decreases when the price
of a substitute in production _____________.
Select one:
a. rises; rises
b. rises; falls
c. falls; falls
d. falls; rises
Your answer is correct.
Please refer to table 3.6(b). The supply of a good decreases when the price of a complement in production falls, and
decreases when the price of a substitute in production rises.
To help you understand we can consider examples. Beef and leather are complements in production, as the supply of beef
results in hides becoming available to produce leather. A decrease in the price of leather, will result in a decrease in the
quantity of leather supplied. This will also result in a decrease in the supply of beef.
Mutton is a substitute in production for beef. An increase in the price of mutton will result in an increase in the quantity of
mutton supplied. Therefore suppliers will now have fewer resources available to supply beef; thus the supply of beef will
decrease.
The correct answer is: falls; rises
,Question 2
Incorrect
Mark 0.00 out of 2.00
The price elasticity of demand measures how sensitive the quantity demanded is to changes in demand.
Select one:
a. True
b. False
Your answer is incorrect.
The price elasticity of demand measures how sensitive the quantity demanded is to a change in the price of the good. Refer
to Section 5.4 of the study material.
The correct answer is: False
Question 3
Correct
Mark 2.00 out of 2.00
The market has shown a trend of a decrease in the price and quantity of biker leather jackets. This can be caused by…
Select one:
a. a decrease in the prices of inputs used in the making of leather jackets.
b. a decrease in the number of bikers.
c. improvement in technology in the leather making industries.
d. an increased desire to buy motorbikes.
Your answer is correct.
A decrease in demand caused by a decrease in the number of bikers will result in a decrease in price and quantity demanded
of biker leather jackets.
A decrease in the price of inputs causes an increase in the supply of leather jackets, and this will result in an increase in the
quantity of leather jackets supplied and a decrease in the price of leather jackets.
An improvement in technology in the leather making industry increases the supply of leather jackets, and this will result in an
increase in the quantity of leather jackets supplied and a decrease in the price of leather jackets.
If more persons buy motorbikes, we can expect the demand for biker leather jackets to increase as well, in which case the
price of the leather jackets will increase and the equilibrium quantity will also increase.
The correct answer is: a decrease in the number of bikers.
, Question 4
Correct
Mark 2.00 out of 2.00
If an increase in the price of dresses leads to a decrease in the demand for scarfs, then dresses and scarfs are ……..
Select one:
a. normal goods.
b. complements.
c. inferior goods.
d. substitutes.
Your answer is correct.
Complements are goods that tend to be used jointly to satisfy a want. If the price of the one good changes, the quantity
demand of that particular good will also change, but in the opposite direction (due to the negative slope of the demand
curve). The demand for goods used with that good (i.e. the complements) will then also shift in the same direction as the
change in the quantity demanded of the original good. In this case, the increase in the price of dresses will result in a
decrease in the quantity demanded of dresses, and since this leads to a decrease in the demand for scarfs, we know that
dresses and scarves are complements.
An increase in the price of a substitute product will lead to an increase in the demand for the alternative product.
Inferior goods are goods of which consumption falls as income increases. Normal goods are goods for which consumption
increases as income increases. This question does not mention a change in income; thus the options that refer to inferior
goods and normal goods are not correct alternatives.
The correct answer is: complements.
Question 5
Correct
Mark 2.00 out of 2.00
When measuring the price elasticity of the demand for coal, using tons instead of kilogram, the price elasticity of the demand
for coal will …
a. not be affected.
b. impossible to say what will happen to the price elasticity of demand.
c. decrease.
d. increase.
Your answer is correct.
The elasticity will not be affected. Elasticity is measured, using percentage changes; therefore, the unit of measurement does
not affect the size of elasticity.
The correct answer is:
not be affected.
QUIZ
Started on Thursday, 29 May 2025, 5:30 PM
State Finished
Completed on Thursday, 29 May 2025, 6:11 PM
Time taken 41 mins 2 secs
Marks 28.00/40.00
Grade 70.00 out of 100.00
Feedback
Good work! You seem to understand the content of Learning Units 3 to 5 quite well. Please read the
feedback provided for each question carefully and make sure you agree with the explanations provided,
especially for the questions you answered incorrectly. Make sure you will not make similar mistakes in
future.
Note that you are allowed to submit 3 attempts for this assessment and that the marks for the best
attempt will contribute towards your final credits. Revise the content carefully before submitting another
attempt.
Question 1
Correct
Mark 2.00 out of 2.00
The supply of a good decreases when the price of a complement in production _____________ and decreases when the price
of a substitute in production _____________.
Select one:
a. rises; rises
b. rises; falls
c. falls; falls
d. falls; rises
Your answer is correct.
Please refer to table 3.6(b). The supply of a good decreases when the price of a complement in production falls, and
decreases when the price of a substitute in production rises.
To help you understand we can consider examples. Beef and leather are complements in production, as the supply of beef
results in hides becoming available to produce leather. A decrease in the price of leather, will result in a decrease in the
quantity of leather supplied. This will also result in a decrease in the supply of beef.
Mutton is a substitute in production for beef. An increase in the price of mutton will result in an increase in the quantity of
mutton supplied. Therefore suppliers will now have fewer resources available to supply beef; thus the supply of beef will
decrease.
The correct answer is: falls; rises
,Question 2
Incorrect
Mark 0.00 out of 2.00
The price elasticity of demand measures how sensitive the quantity demanded is to changes in demand.
Select one:
a. True
b. False
Your answer is incorrect.
The price elasticity of demand measures how sensitive the quantity demanded is to a change in the price of the good. Refer
to Section 5.4 of the study material.
The correct answer is: False
Question 3
Correct
Mark 2.00 out of 2.00
The market has shown a trend of a decrease in the price and quantity of biker leather jackets. This can be caused by…
Select one:
a. a decrease in the prices of inputs used in the making of leather jackets.
b. a decrease in the number of bikers.
c. improvement in technology in the leather making industries.
d. an increased desire to buy motorbikes.
Your answer is correct.
A decrease in demand caused by a decrease in the number of bikers will result in a decrease in price and quantity demanded
of biker leather jackets.
A decrease in the price of inputs causes an increase in the supply of leather jackets, and this will result in an increase in the
quantity of leather jackets supplied and a decrease in the price of leather jackets.
An improvement in technology in the leather making industry increases the supply of leather jackets, and this will result in an
increase in the quantity of leather jackets supplied and a decrease in the price of leather jackets.
If more persons buy motorbikes, we can expect the demand for biker leather jackets to increase as well, in which case the
price of the leather jackets will increase and the equilibrium quantity will also increase.
The correct answer is: a decrease in the number of bikers.
, Question 4
Correct
Mark 2.00 out of 2.00
If an increase in the price of dresses leads to a decrease in the demand for scarfs, then dresses and scarfs are ……..
Select one:
a. normal goods.
b. complements.
c. inferior goods.
d. substitutes.
Your answer is correct.
Complements are goods that tend to be used jointly to satisfy a want. If the price of the one good changes, the quantity
demand of that particular good will also change, but in the opposite direction (due to the negative slope of the demand
curve). The demand for goods used with that good (i.e. the complements) will then also shift in the same direction as the
change in the quantity demanded of the original good. In this case, the increase in the price of dresses will result in a
decrease in the quantity demanded of dresses, and since this leads to a decrease in the demand for scarfs, we know that
dresses and scarves are complements.
An increase in the price of a substitute product will lead to an increase in the demand for the alternative product.
Inferior goods are goods of which consumption falls as income increases. Normal goods are goods for which consumption
increases as income increases. This question does not mention a change in income; thus the options that refer to inferior
goods and normal goods are not correct alternatives.
The correct answer is: complements.
Question 5
Correct
Mark 2.00 out of 2.00
When measuring the price elasticity of the demand for coal, using tons instead of kilogram, the price elasticity of the demand
for coal will …
a. not be affected.
b. impossible to say what will happen to the price elasticity of demand.
c. decrease.
d. increase.
Your answer is correct.
The elasticity will not be affected. Elasticity is measured, using percentage changes; therefore, the unit of measurement does
not affect the size of elasticity.
The correct answer is:
not be affected.
