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ECS1501 Assignment 6 2023 - (ANSWERS)
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ECS1501 Assignment 6 2023 - (ANSWERS)
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,Which one of the following statements with regards to price elasticity is correct?If you know what the price elasticity of petrol is, all you will be able to say is that an increase in the price of petrol will
reduce the quantity of petrol demanded.
The price elasticity of demand provides us with a measure of how sensitive or responsive the price of a good or
service is to a change in demand.
If the price elasticity of good X is greater than the price elasticity of good Y, it means that households are more
responsive or sensitive to a change in the price of good Y than to a change in the price of good X.
If you know what the price elasticity of petrol is, you will know how sensitive or responsive the quantity demanded of
petrol is to a change in the price of petrol.
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If the price elasticity of demand for Omo washing powder is 3.0, a ________ drop in price leads to a __________ rise in
the quantity demanded.
12 per cent; 4 per cent
R1 000; 333-unit
R1 000; 3000-unit
12 per cent; 36 per cent
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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?
20
2
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