ECS1500-23-S2Assessment 2.pdf

Assessment 2
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Started on Wednesday, 16 August 2023, 1:27 PM
State Finished
Completed on Wednesday, 16 August 2023, 1:36 PM
Time taken 8 mins 28 secs
Marks 26.00/40.00
Grade 65.00 out of 100.00
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Questions 1 to 5 Learning Unit 3
Questions 6 to 10 Learning Unit 4
Questions 11 to 12 Learning unit 5
Questions 13 to 14 Learning unit 5, specifically section
Questions 15 to 16 Learning unit 5, specifically section
Questions 17 to 18 Learning unit 5, specifically section
Questions 19 to 20 Learning unit 5, specifically section




Question 1
Correct
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Question text
When Product A increases in price and this results in an increase in the demand for Product B, we
consider Product A as a …


Select one:

a.
inferior good


b.
substitute good for good B

,c.
complement good for good B


d.
none of the above
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When the price of good A increases, the quantity demanded of that good falls. In a case where the
price increase leads to an increase in demand for an alternative product such as the increase in the
demand for product B, this means that good A and B are substitutes. This means that good B is
used instead of good A.
A substitute good is a good that can be used in place of another good to satisfy a certain want.
Inferior goods are goods for which the demand decreases when the income of households
increases. We cannot determine if Good B is an inferior good because there is inadequate
information available.
Goods that are complements are goods that tend to be used jointly to satisfy a want. If Goods A
and B were complements, the demand for product B will decrease when the quantity of good A
demanded falls (due to an increase in the price of A).


The correct answer is: substitute good for good B

Question 2
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Question text
Suppose Body Fragrances increases the price of its Adore Me fragrance from $150 to $200. The
result is a decrease in…

Select one:

a.
the quantity supplied of this product

b.
the supply of this product

c.
the demand for this product

d.
the quantity demanded of this product
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Your answer is correct.
A change in the price of a product will result in a change in the quantity demanded of that
product, and this is illustrated by a movement along the demand curve. If the price of a product
increases, the quantity demanded will decrease.

, A change in the price of a product will, of course, also result in a change in the quantity supplied
of that product, and this is illustrated by a movement along the supply curve. If the price of a
product increases, the quantity supplied will increase.

The correct answer is: the quantity demanded of this product

Question 3
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Question text
The figure below shows the market for frozen angelfish. The shift in the demand curve from D 1 to
D2 in the figure is due to a 10% increase in income.




The income elasticity of demand (rounded to two digits after the decimal) for frozen angelfish is
equal to ....
Select one:

a.
0,40


b.
0,75


c.
25,00


d.
2,50