Ecs2601 exam pack Study guides, Study notes & Summaries

SUGGESTED SOLUTIONS FOR MAY/JUNE 2015 QUESTION 1 1a. Consider the following baskets of goods: A B C If preferences satisfy all requirements, is A preferred to C or C to A? Explain your answer. Basket A has more food than basket C. Basket C has more clothing than basket A. Therefore, basket A and C cannot be compared without additional information. 1b. An island economy produces only two goods – coconuts and pineapples. There are five people (A, B, C, D and E) living on the island, w...

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ECS2601 EXAM PACK 2023 100+ QUESTIONS AND CORRECT ANSWERS RATED A+. 1. Use the diagram below to answer the question that follows; At equilibrium, the price elasticity of supply is given by; [1] 2. [2] 1. [3] 2.5. [4] 3. Explanations: Point elasticity is the price elasticity of demand at a specific point on the demand curve instead of over a range of it.By using the point elasticity formula we can get 2 ;

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