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Summary ECS1501 ASSESSMENT 6 SEMESTER 2 2024
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ECS1501 ASSESSMENT 6 SEMESTER 2 2024
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Question 2If the owners of Ster Kinekor movie theatres discounted the price of admission fees by 30 per
cent, average attendance would rise by 50 per cent. Based on this data, it could be concluded
that the price elasticity of demand for movie tickets is
unitary elastic.
inelastic.
perfectly elastic.
Elastic.
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?
2
10
0,5
20
Question 4
One of the reasons why petrol (fuel) has a low price elasticity of demand is that it has no close
substitutes.
Note, you will lose 50% of the mark for this question if you choose the incorrect option.
If you are not sure about the answer and do not want to guess, choose the “Unsure” option. You
will neither receive marks for the question nor will you lose marks for choosing this option.
True
False
Unsure
Question 5
If an increase in the price of sugar leaves the total expenditure on sugar (which is also the total
revenue of the suppliers of sugar) unchanged, then the price elasticity of the demand for sugar
is equal to one.
Note, you will lose 50% of the mark for this question if you choose the incorrect option.
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