ECS1501 – ASSESSMENT 6 – EXPECTED QUESTIONS AND ANSWERS - 2024
Assessment 6
Started on Friday, 29 September 2023,
State Finished
Completed on Friday, 29 September 2023,
Time taken
Marks 15.00/15.00
Grade 100.00 out of 100.00
Question 1
I confirm that this assessment will be my own individual work; that I will not
communicate with anyone else in any way during the completion of this
assessment; that I will not cheat in any way in completing and submitting this
assessment.
- I confirm.
- I do not confirm.
Question 2
Price elasticity of demand gives us a measure of how sensitive or responsive
the ________ of a good or service is to a change in the _________ of a good or
service.
- price; demand
- demand; price
- price; quantity demanded
- quantity demanded; price
Feedback
This question assessed your definition of the price elasticity of demand: “The price
elasticity of demand is the percentage change in quantity demanded if the price of
the product changes by one per cent.” In other words, price elasticity indicates how
sensitive or responsive quantity demanded is to a change in price.
1
, ECS1501 – ASSESSMENT 6 – EXPECTED QUESTIONS AND ANSWERS - 2024
Question 3
A 10 percent increase in the price of spinach results in a 20 percent decrease
in the quantity of spinach demanded. What is the price elasticity of demand for
spinach?
• 10
• 20
• 0,5
•2
Feedback
This question requires a straightforward application of the formula for price elasticity.
Question 4
What does the price elasticity of demand measure?
- the responsiveness of the quantity demanded of a good to changes in the price of
the good
- the slope of the demand curve
- how sensitive the price is to changes in the quantity demanded
- how sensitive the quantity demanded of a good is to changes in income
Feedback
The price elasticity of demand measures the responsiveness of the quantity
demanded of a good to changes in the price of the good.
Question 5
A possible reason that the demand for petrol is inelastic is because
- a large proportion of the petrol South Africa consumes is imported.
- households spend a small proportion of their income on petrol.
2
Assessment 6
Started on Friday, 29 September 2023,
State Finished
Completed on Friday, 29 September 2023,
Time taken
Marks 15.00/15.00
Grade 100.00 out of 100.00
Question 1
I confirm that this assessment will be my own individual work; that I will not
communicate with anyone else in any way during the completion of this
assessment; that I will not cheat in any way in completing and submitting this
assessment.
- I confirm.
- I do not confirm.
Question 2
Price elasticity of demand gives us a measure of how sensitive or responsive
the ________ of a good or service is to a change in the _________ of a good or
service.
- price; demand
- demand; price
- price; quantity demanded
- quantity demanded; price
Feedback
This question assessed your definition of the price elasticity of demand: “The price
elasticity of demand is the percentage change in quantity demanded if the price of
the product changes by one per cent.” In other words, price elasticity indicates how
sensitive or responsive quantity demanded is to a change in price.
1
, ECS1501 – ASSESSMENT 6 – EXPECTED QUESTIONS AND ANSWERS - 2024
Question 3
A 10 percent increase in the price of spinach results in a 20 percent decrease
in the quantity of spinach demanded. What is the price elasticity of demand for
spinach?
• 10
• 20
• 0,5
•2
Feedback
This question requires a straightforward application of the formula for price elasticity.
Question 4
What does the price elasticity of demand measure?
- the responsiveness of the quantity demanded of a good to changes in the price of
the good
- the slope of the demand curve
- how sensitive the price is to changes in the quantity demanded
- how sensitive the quantity demanded of a good is to changes in income
Feedback
The price elasticity of demand measures the responsiveness of the quantity
demanded of a good to changes in the price of the good.
Question 5
A possible reason that the demand for petrol is inelastic is because
- a large proportion of the petrol South Africa consumes is imported.
- households spend a small proportion of their income on petrol.
2
