Started on Saturday, 1 June 2024, 11:57 AM
State Finished
Completed on Saturday, 1 June 2024, 1:02 PM
Time taken 1 hour 4 mins
Marks 12.00/12.00
Grade 100.00 out of 100.00
Question 1 I confirm
Complete
that this assessment will be my own individual work;
Not graded
that I will not communicate with anyone else in any way during the completion of this
Flag assessment;
question
that I will not cheat in any way in completing and submitting this assessment.
I confirm.
I do not confirm.
Question 2 A market demand curve reflects
Complete
Mark 1.00 out how quantity demanded changes when the number of buyers changes.
of 1.00
Flag
how much buyers are willing and able to buy at each possible price.
question
when the buyers are willing to buy the most.
the fact that the level of income is inversely related to quantity demanded.
The demand for a product depends on two conditions: i) intent – there must be a willingness
to buy, and ii) means to buy – you must have the income or purchasing power. In general, we
refer to demand as the quantities of a good or service a consumer is willing and able to buy.
If these are the only four buyers in the market, then the market quantity demanded at a price of
R8 is
4 units.
, 32 units.
6 units.
24 units.
The market demand is the sum of the individual demand at each price. At a price of R8, the
market quantity demanded is 24, that is, 6 + 7 + 5 + 6.
Question 4 If a decrease in income increases the demand for a good, then the good is
Complete
Mark 1.00 out an inferior good.
of 1.00
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a substitute good.
question
a complement good.
a normal good.
This question revisits the definition of an inferior good.
Question 5 An increase in demand is represented by
Complete
Mark 1.00 out a movement upward and to the left along a demand curve.
of 1.00
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a rightward shift of a demand curve.
question
a movement downward and to the right along a demand curve.
a leftward shift of a demand curve.
This question deals with shifts of versus movements along curves. The easiest way to deal with
the distinction between the two is to remember that if there is a change in price (and only if there
is a change in price), we have a change in quantity demanded. A change in quantity demanded is
shown by a movement along the demand curve. If any of the other determinants of demand
change (income, taste, fashion …) there is a change in demand, which is illustrated by a shift of
the demand curve. An increase in demand is represented by a rightward shift of the demand
curve.
Question 6 A higher price for hot dogs would result in a
Complete
Mark 1.00 out increase in the demand for hot dog buns.
of 1.00
Flag
increase in the demand for hot dogs.
question
decrease in the demand for hot dog buns.
decrease in the demand for hot dogs ____
, An increase in the price of hot dogs will lead to a decrease in the quantity demanded of hot dogs
(therefore an upward movement along the demand curve for coffee). Less hot dogs are sold, so
less hot dog rolls are need - the demand for hot dog rolls decreases.
Question 7 You love pecan nuts. You hear on the news that 60 % of the pecan nut crop in the Limpopo
Complete Province has been wiped out, which will cause the price to triple by the end of the year. As a
Mark 1.00 out
result,
of 1.00
Flag your demand for pecan nuts falls as you look for a substitute good.
question
your demand for pecan nut butter will decrease by the end of the year.
the quantity pecan nuts demanded by you will decrease by the end of the year.
you decide to give up pecan nuts completely.
Remember the inverse relationship between price and quantity demanded. The higher price for
peanuts will lead to a decrease in the quantity demanded.
Question 8 What is the law of demand?
Complete
Mark 1.00 out When the price of a good or service rises, buyers respond by purchasing more.
of 1.00
Flag
When the price of a good falls, buyers respond by purchasing more.
question
When buyers tastes for the good increase, they purchase more of the good.
When income levels increase, buyers respond by purchasing more.
According to the law of demand, there is a negative relationship between quantity demanded and
price. Thus, when the price of a good falls, buyers respond by purchasing more.
Question 9 Soup is an inferior good if the demand
Complete
Mark 1.00 out for soup rises when the price of soup falls.
of 1.00
Flag
curve for soup slopes upward.
question
for soup falls when the price of a substitute for soup rises.
for soup falls when income rises.
If the demand for a product decreases when income increases, we are dealing with an inferior
good.
Question 10 The demand for a product refers to the quantities of the product that potential buyers are willing
Complete and able to buy.
, Mark 1.00 out
of 1.00
Note, that you will lose 50% of the mark for this question, that is, 0.5 marks will be subtracted
Flag from your total marks for the assessment, if you choose the incorrect option.
question 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 11 Demand is a stock concept.
Complete
Mark 1.00 out Note, that you will lose 50% of the mark for this question, that is, 0.5 marks will be subtracted
of 1.00 from your total marks for the assessment, 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
Flag
question will neither receive marks for the question nor will you lose marks for choosing this option.
True
False
Unsure
Question 12 The figure below illustrates two demand curves for peanuts, D1 and D2.
Complete
Mark 1.00 out
of 1.00
Flag
question
A movement from point c to point d could be the result of an increase in the price of a substitute
(say, pecan nuts).
Note, that 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
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