How often Demand, supply and market equilibrium is asked
5 of 5
papers asked it
avg 22 marks · last Oct 2017
Worth 3–8 marks when it appears as a written question, plus 52 multiple-choice items.
Where it was asked
What costs marks here
Marker’s traps come from memos. We don’t have one for this module yet.
A memo tells us what the markers actually rewarded and penalised. With one, this section fills in for every student — help us get one.
The questions
Oct/Nov 2017, Q13 marks
Consider the market for rain coats in the Western Cape. Using a demand-and-supply diagram, illustrate what would happen to the equilibrium price and equilibrium quantity of rain coats in that region if the Western Cape were to experience a good (above-average) rainy season. Be sure to label the diagram fully, including the axes, the original and new curves, and the original and new equilibrium points.
Oct/Nov 2017, Q28 marks
This question is based on a diagram (not reproduced here) illustrating the market for meat, showing equilibrium price and quantity before any shock occurs. Question 2 (worth 8 marks in total) asks two things about the market for meat. First, using the given supply-and-demand diagram for meat, show and clearly label the effect on the equilibrium price and quantity of meat that results if the main cattle-farming area of a country suffers a severe drought. Second, based on this same drought scenario, explain in words the adjustment process by which the meat market moves from its old equilibrium to its new equilibrium position.
Oct/Nov 2017, Q35 marks
In the market for newspapers, two events occur at the same time: firstly, Bafana Bafana wins the African Cup, causing everybody to want to read more about it in the paper; secondly, the paper on which the newspaper is printed becomes more expensive. The increase in demand caused by Bafana Bafana's win is larger in effect than the increase in cost caused by the more expensive paper. Draw a graph of the market for newspapers showing all these changes.
Oct/Nov 2017, QB.122 marks · multiple choice
This is Section B of the ECS1501 October/November 2017 examination, consisting of 35 compulsory multiple-choice items, each worth 2 marks (70 marks in total, 84 minutes allowed). For each item, select the correct option from those listed. Suppose five companies supply bolts and screws to the market. If one of these companies closes down, what will happen in the market for bolts and screws?
Oct/Nov 2017, QB.132 marks · multiple choice
This is Section B of the ECS1501 October/November 2017 examination, consisting of 35 compulsory multiple-choice items, each worth 2 marks (70 marks in total, 84 minutes allowed). For each item, select the correct option from those listed. A supply-and-demand graph shows price on the vertical axis and quantity on the horizontal axis. The original supply curve S and demand curve D intersect at equilibrium E1. The supply curve then shifts rightward to S1 (demand remaining unchanged), producing a new equilibrium E2, which lies at a lower price and higher quantity than E1. What caused the equilibrium to change from E1 to E2?
Oct/Nov 2017, QB.142 marks · multiple choice
This is Section B of the ECS1501 October/November 2017 examination, consisting of 35 compulsory multiple-choice items, each worth 2 marks (70 marks in total, 84 minutes allowed). For each item, select the correct option from those listed. A supply-and-demand graph shows an upward-sloping supply curve S and a downward-sloping demand curve D, intersecting at point E where price equals PM and quantity equals QM. The demand curve's vertical intercept is P1 and its horizontal intercept is Q1. What area on this graph represents consumer surplus?
Oct/Nov 2017, QB.152 marks · multiple choice
This is Section B of the ECS1501 October/November 2017 examination, consisting of 35 compulsory multiple-choice items, each worth 2 marks (70 marks in total, 84 minutes allowed). For each item, select the correct option from those listed. A dairy farmer producing fat-free milk can also sell the cream extracted in the process, making fat-free milk and cream joint products. After an influential magazine article publicises the health benefits of fat-free milk, the demand for fat-free milk rises. Given that cream is a joint product of fat-free milk production, what will happen to the equilibrium price and quantity of cream as a result?
Oct/Nov 2017, QB.302 marks · multiple choice
This is Section B of the ECS1501 October/November 2017 examination, consisting of 35 compulsory multiple-choice items, each worth 2 marks (70 marks in total, 84 minutes allowed). For each item, select the correct option from those listed. In the market for fish there are four suppliers. At a price of R50 per fish, John's Fisheries supplies 120 fish. At R50, Snoek Kings supplies no fish at all, but would supply 230 fish if the price were R60 per fish. The Boat supplies 356 fish at a price of R50, and Sardine Runners supplies 54 fish at R50. What is the total market supply of fish at a price of R50 per fish?
May/Jun 2017, Q1.15 marks
This question concerns the market for milk, where two simultaneous shocks occur: government subsidies to dairy farmers rise, causing an increase in the number of dairy farmers, while at the same time unfavourable economic growth causes average household income to fall. The effect of the increased subsidies on the market is larger in magnitude than the effect of the decreased household income. Using a demand-and-supply diagram for the milk market, illustrate both changes described above (the increase in dairy farmers due to higher subsidies, and the decrease in household income) occurring at the same time, given that the subsidy effect outweighs the income effect. Show all the resulting shifts and the new equilibrium clearly on the graph provided.
May/Jun 2017, Q1.25 marks
This question concerns the market for milk, where two simultaneous shocks occur: government subsidies to dairy farmers rise, causing an increase in the number of dairy farmers, while at the same time unfavourable economic growth causes average household income to fall. The effect of the increased subsidies on the market is larger in magnitude than the effect of the decreased household income. Provide a critical discussion of the diagram you drew for the milk market in question 1.1, explaining which curve(s) shifted, in which direction, and why, and relating your explanation to the combined effect of the increased number of dairy farmers (due to subsidies) and the decreased household income on the equilibrium price and quantity of milk.
May/Jun 2017, Q23 marks
For the market described, the quantity demanded is given by the equation QQdd = 1800 + 0,6PP, while the quantity supplied is given by QQss = 7200 − 0,2PP. Using these two equations, determine the equilibrium quantity and the equilibrium price for this market.
May/Jun 2017, QB122 marks · multiple choice
This is Section B, the compulsory multiple-choice component of the ECS1501 May/June 2017 exam, consisting of 35 items worth 70 marks in total (2 marks each, since the paper does not print individual marks per item but states the section is compulsory). Which of the following scenarios best illustrates the law of demand?
May/Jun 2017, QB132 marks · multiple choice
This is Section B, the compulsory multiple-choice component of the ECS1501 May/June 2017 exam, consisting of 35 items worth 70 marks in total (2 marks each, since the paper does not print individual marks per item but states the section is compulsory). Which of the following is most likely to occur in the market for vegetables during a drought?
May/Jun 2017, QB142 marks · multiple choice
This is Section B, the compulsory multiple-choice component of the ECS1501 May/June 2017 exam, consisting of 35 items worth 70 marks in total (2 marks each, since the paper does not print individual marks per item but states the section is compulsory). On a standard demand-and-supply diagram with price on the vertical axis and quantity on the horizontal axis, the demand curve D and supply curve S intersect at equilibrium point E, giving equilibrium price P_M and equilibrium quantity Q_M. The price axis also shows a higher price P1 (where the supply curve would reach if extended) and the quantity axis shows Q1 (where the demand curve reaches at price 0). Which area on this diagram represents the producer surplus?
May/Jun 2017, QB152 marks · multiple choice
This is Section B, the compulsory multiple-choice component of the ECS1501 May/June 2017 exam, consisting of 35 items worth 70 marks in total (2 marks each, since the paper does not print individual marks per item but states the section is compulsory). Socks and shoes are complements in consumption. What will happen in the market for socks if the supply of shoes decreases?
May/Jun 2016, Q151.43 marks · multiple choice
Complete the following statement: the demand for a product is said to be effective when ___.
May/Jun 2016, Q161.43 marks · multiple choice
Identify which one of the following factors will cause the demand curve for butter to shift to the right.
May/Jun 2016, Q171.43 marks · multiple choice
In a diagram for the market for product A, price (P) is on the vertical axis and quantity (Q) is on the horizontal axis. A downward-sloping demand curve D1 is shown, along with two upward-sloping supply curves, S1 and S2, with the supply curve moving rightward from S1 to S2. What could most likely explain this movement of the supply curve from S1 to S2?
May/Jun 2016, Q181.43 marks · multiple choice
Using the same market-for-product-A diagram, where the supply curve moves rightward from S1 to S2 against a downward-sloping demand curve D1, what would be the likely effect on price and quantity of this movement?
May/Jun 2016, Q191.43 marks · multiple choice
Still referring to the market for product A (with the supply curve able to move from S1 to S2 against demand curve D1), if this movement of the supply curve took place but the price failed to adjust to the new level of market equilibrium, which of the following would likely be observed in the market for product A?
May/Jun 2016, Q201.43 marks · multiple choice
Identify which one of the following statements is incorrect.
May/Jun 2016, Q211.43 marks · multiple choice
Given the two equations Qd = 100 − 3P and Qs = 50 + 2P, determine which option correctly indicates the equilibrium price and quantity.
May/Jun 2016, Q221.43 marks · multiple choice
Identify which one of the following factors causes an increase in demand.
May/Jun 2016, Q231.43 marks · multiple choice
Complete the following statement: an increase in the supply of bananas ___.
May/Jun 2016, Q241.43 marks · multiple choice
Determine which one of the following statements is correct.
May/Jun 2016, Q251.43 marks · multiple choice
Products A and B are substitutes, products B and C are complements, and the markets for products A and C are unrelated. Which one of the following statements regarding the markets for products A, B and C is true?
May/Jun 2016, Q271.43 marks · multiple choice
Identify which one of the following statements is incorrect.
May/Jun 2015, Q131.4286 marks · multiple choice
This is the ECS1501 (Economics IA) May/June 2015 examination, a closed-book, multiple-choice paper lasting 2 hours and worth 100 marks in total. It contains 70 questions that must all be answered on a mark-reading sheet using unique number 492522. The paper states each question carries 1,4 marks, though 70 Ă— 1,4 = 98, not 100; the exact weighting must therefore be 100/70 â‰Ë†1,4286 marks per question to reach the stated total of 100 - a minor internal inconsistency in the printed paper. Given that milk is a normal good, determine what will definitely happen to the demand for milk if consumers' income decreases.
May/Jun 2015, Q141.4286 marks · multiple choice
This is the ECS1501 (Economics IA) May/June 2015 examination, a closed-book, multiple-choice paper lasting 2 hours and worth 100 marks in total. It contains 70 questions that must all be answered on a mark-reading sheet using unique number 492522. The paper states each question carries 1,4 marks, though 70 Ă— 1,4 = 98, not 100; the exact weighting must therefore be 100/70 â‰Ë†1,4286 marks per question to reach the stated total of 100 - a minor internal inconsistency in the printed paper. If the price of domestic airline tickets increases, and all other factors remain unchanged (ceteris paribus), determine the effect on the demand for car rentals, a good related to air travel.
May/Jun 2015, Q151.4286 marks · multiple choice
This is the ECS1501 (Economics IA) May/June 2015 examination, a closed-book, multiple-choice paper lasting 2 hours and worth 100 marks in total. It contains 70 questions that must all be answered on a mark-reading sheet using unique number 492522. The paper states each question carries 1,4 marks, though 70 Ă— 1,4 = 98, not 100; the exact weighting must therefore be 100/70 â‰Ë†1,4286 marks per question to reach the stated total of 100 - a minor internal inconsistency in the printed paper. Identify which one of the following four statements about demand and supply is correct.
May/Jun 2015, Q161.4286 marks · multiple choice
This is the ECS1501 (Economics IA) May/June 2015 examination, a closed-book, multiple-choice paper lasting 2 hours and worth 100 marks in total. It contains 70 questions that must all be answered on a mark-reading sheet using unique number 492522. The paper states each question carries 1,4 marks, though 70 Ă— 1,4 = 98, not 100; the exact weighting must therefore be 100/70 â‰Ë†1,4286 marks per question to reach the stated total of 100 - a minor internal inconsistency in the printed paper. Identify which one of the following will NOT cause a change in the demand for coffee.
May/Jun 2015, Q171.4286 marks · multiple choice
This is the ECS1501 (Economics IA) May/June 2015 examination, a closed-book, multiple-choice paper lasting 2 hours and worth 100 marks in total. It contains 70 questions that must all be answered on a mark-reading sheet using unique number 492522. The paper states each question carries 1,4 marks, though 70 Ă— 1,4 = 98, not 100; the exact weighting must therefore be 100/70 â‰Ë†1,4286 marks per question to reach the stated total of 100 - a minor internal inconsistency in the printed paper. If farmers decide to plant more cabbage next year, and all else remains equal (ceteris paribus), determine the effect on the relevant supply/demand curves.
May/Jun 2015, Q181.4286 marks · multiple choice
This is the ECS1501 (Economics IA) May/June 2015 examination, a closed-book, multiple-choice paper lasting 2 hours and worth 100 marks in total. It contains 70 questions that must all be answered on a mark-reading sheet using unique number 492522. The paper states each question carries 1,4 marks, though 70 Ă— 1,4 = 98, not 100; the exact weighting must therefore be 100/70 â‰Ë†1,4286 marks per question to reach the stated total of 100 - a minor internal inconsistency in the printed paper. A diagram shows the market for hamburgers, with a downward-sloping demand curve D and an upward-sloping supply curve S. The curves intersect at a price of R40 and a quantity of 130 hamburgers. At a price of R35, the demand curve indicates a quantity of 180 hamburgers while the supply curve indicates a quantity of 100 hamburgers. If the price of hamburgers is fixed at R35 per burger, determine the resulting market condition.
May/Jun 2015, Q191.4286 marks · multiple choice
This is the ECS1501 (Economics IA) May/June 2015 examination, a closed-book, multiple-choice paper lasting 2 hours and worth 100 marks in total. It contains 70 questions that must all be answered on a mark-reading sheet using unique number 492522. The paper states each question carries 1,4 marks, though 70 Ă— 1,4 = 98, not 100; the exact weighting must therefore be 100/70 â‰Ë†1,4286 marks per question to reach the stated total of 100 - a minor internal inconsistency in the printed paper. Suppose the supply and demand curves for a good are given by Qs = 1 + P and Qd = 2 - P, with equilibrium occurring where Qs = Qd. Determine the equilibrium price level.
May/Jun 2015, Q201.4286 marks · multiple choice
This is the ECS1501 (Economics IA) May/June 2015 examination, a closed-book, multiple-choice paper lasting 2 hours and worth 100 marks in total. It contains 70 questions that must all be answered on a mark-reading sheet using unique number 492522. The paper states each question carries 1,4 marks, though 70 Ă— 1,4 = 98, not 100; the exact weighting must therefore be 100/70 â‰Ë†1,4286 marks per question to reach the stated total of 100 - a minor internal inconsistency in the printed paper. Using the same supply and demand curves, Qs = 1 + P and Qd = 2 - P, with equilibrium where Qs = Qd, determine the equilibrium quantity supplied.
May/Jun 2015, Q211.4286 marks · multiple choice
This is the ECS1501 (Economics IA) May/June 2015 examination, a closed-book, multiple-choice paper lasting 2 hours and worth 100 marks in total. It contains 70 questions that must all be answered on a mark-reading sheet using unique number 492522. The paper states each question carries 1,4 marks, though 70 Ă— 1,4 = 98, not 100; the exact weighting must therefore be 100/70 â‰Ë†1,4286 marks per question to reach the stated total of 100 - a minor internal inconsistency in the printed paper. Determine how an increase in supply is represented graphically.
May/Jun 2015, Q221.4286 marks · multiple choice
This is the ECS1501 (Economics IA) May/June 2015 examination, a closed-book, multiple-choice paper lasting 2 hours and worth 100 marks in total. It contains 70 questions that must all be answered on a mark-reading sheet using unique number 492522. The paper states each question carries 1,4 marks, though 70 Ă— 1,4 = 98, not 100; the exact weighting must therefore be 100/70 â‰Ë†1,4286 marks per question to reach the stated total of 100 - a minor internal inconsistency in the printed paper. Four labelled diagrams (A, B, C and D) each show a demand curve D0 shifting to D1 (or a supply curve shifting) relative to an unchanging supply or demand curve, with corresponding price and quantity changes shown as P0/P1 and Q0/Q1. In diagram A, demand shifts right (D0 to D1) causing price and quantity to rise from P0,Q0 to P1,Q1. In diagram B, demand shifts left (D0 to D1) causing price and quantity to fall. In diagram C, supply shifts right (S0 to S1) causing price to fall and quantity to rise. In diagram D, supply shifts left (S0 to S1) causing price to rise and quantity to fall. Becky considers iced tea to be an inferior good. Determine which figure correctly illustrates the effect of a decrease in Becky's income on her demand for iced tea.
May/Jun 2015, Q231.4286 marks · multiple choice
This is the ECS1501 (Economics IA) May/June 2015 examination, a closed-book, multiple-choice paper lasting 2 hours and worth 100 marks in total. It contains 70 questions that must all be answered on a mark-reading sheet using unique number 492522. The paper states each question carries 1,4 marks, though 70 Ă— 1,4 = 98, not 100; the exact weighting must therefore be 100/70 â‰Ë†1,4286 marks per question to reach the stated total of 100 - a minor internal inconsistency in the printed paper. A diagram represents the market for hamburgers with two demand curves (D1 and D2) and two supply curves (S1 and S2), where D2 lies to the right of D1 and S2 lies to the right of S1. If the price of meat patties used in the burgers rises, and at the same time people become health conscious regarding the potential risks of heart-related diseases from eating hamburgers, determine which combination of curve shifts results.
May/Jun 2015, Q241.4286 marks · multiple choice
This is the ECS1501 (Economics IA) May/June 2015 examination, a closed-book, multiple-choice paper lasting 2 hours and worth 100 marks in total. It contains 70 questions that must all be answered on a mark-reading sheet using unique number 492522. The paper states each question carries 1,4 marks, though 70 Ă— 1,4 = 98, not 100; the exact weighting must therefore be 100/70 â‰Ë†1,4286 marks per question to reach the stated total of 100 - a minor internal inconsistency in the printed paper. Determine the effect of a decrease in demand, with no change in supply, on the market.
May/Jun 2015, Q251.4286 marks · multiple choice
This is the ECS1501 (Economics IA) May/June 2015 examination, a closed-book, multiple-choice paper lasting 2 hours and worth 100 marks in total. It contains 70 questions that must all be answered on a mark-reading sheet using unique number 492522. The paper states each question carries 1,4 marks, though 70 Ă— 1,4 = 98, not 100; the exact weighting must therefore be 100/70 â‰Ë†1,4286 marks per question to reach the stated total of 100 - a minor internal inconsistency in the printed paper. If there is an increase in income, determine what one would expect to happen in the relevant market.
May/Jun 2015, Q261.4286 marks · multiple choice
This is the ECS1501 (Economics IA) May/June 2015 examination, a closed-book, multiple-choice paper lasting 2 hours and worth 100 marks in total. It contains 70 questions that must all be answered on a mark-reading sheet using unique number 492522. The paper states each question carries 1,4 marks, though 70 Ă— 1,4 = 98, not 100; the exact weighting must therefore be 100/70 â‰Ë†1,4286 marks per question to reach the stated total of 100 - a minor internal inconsistency in the printed paper. Determine which of the following would shift the supply curve for soft drinks to the left.
May/Jun 2015, Q271.4286 marks · multiple choice
This is the ECS1501 (Economics IA) May/June 2015 examination, a closed-book, multiple-choice paper lasting 2 hours and worth 100 marks in total. It contains 70 questions that must all be answered on a mark-reading sheet using unique number 492522. The paper states each question carries 1,4 marks, though 70 Ă— 1,4 = 98, not 100; the exact weighting must therefore be 100/70 â‰Ë†1,4286 marks per question to reach the stated total of 100 - a minor internal inconsistency in the printed paper. Determine the result of an increase in demand coupled with a decrease in supply, in terms of price and quantity effects.
May/Jun 2015, Q281.4286 marks · multiple choice
This is the ECS1501 (Economics IA) May/June 2015 examination, a closed-book, multiple-choice paper lasting 2 hours and worth 100 marks in total. It contains 70 questions that must all be answered on a mark-reading sheet using unique number 492522. The paper states each question carries 1,4 marks, though 70 Ă— 1,4 = 98, not 100; the exact weighting must therefore be 100/70 â‰Ë†1,4286 marks per question to reach the stated total of 100 - a minor internal inconsistency in the printed paper. Suppose the demand and supply of grapes both increase, but the increase in demand is major while the increase in supply is minor. Given this scenario, determine the resulting effect on price and quantity.
Oct/Nov 2014, Q71.4285714285714286 marks · multiple choice
This is the multiple-choice section of the ECS1501 (Economics 1A) October/November 2014 examination, a closed-book, 2-hour paper worth 100 marks in total, for which a non-programmable pocket calculator may be used. The paper consists of 70 multiple-choice questions numbered 1 to 70 that must all be answered on the supplied mark-reading sheet using unique number 495584. The paper states that each question is worth 1,4 marks so that the 70 questions together make up the stated 100 marks (note: 70 × 1,4 = 98, not exactly 100, which appears to be a rounding inconsistency in the original paper). Below, each of the 70 individual multiple-choice items is reproduced, covering topics from basic economic concepts, demand and supply, elasticity, consumer theory, production and costs, market structures (perfect competition, monopoly, monopolistic competition) and labour markets. The price of desktop computers has fallen, and as a result the number of desktop computers sold by MIC-Technologies has increased at a rapid rate. What term describes this rise in sales resulting from the lower price?
Oct/Nov 2014, Q81.4285714285714286 marks · multiple choice
This is the multiple-choice section of the ECS1501 (Economics 1A) October/November 2014 examination, a closed-book, 2-hour paper worth 100 marks in total, for which a non-programmable pocket calculator may be used. The paper consists of 70 multiple-choice questions numbered 1 to 70 that must all be answered on the supplied mark-reading sheet using unique number 495584. The paper states that each question is worth 1,4 marks so that the 70 questions together make up the stated 100 marks (note: 70 × 1,4 = 98, not exactly 100, which appears to be a rounding inconsistency in the original paper). Below, each of the 70 individual multiple-choice items is reproduced, covering topics from basic economic concepts, demand and supply, elasticity, consumer theory, production and costs, market structures (perfect competition, monopoly, monopolistic competition) and labour markets. For what reason do economists make the distinction between an increase in quantity demanded and an increase in demand?
Oct/Nov 2014, Q91.4285714285714286 marks · multiple choice
This is the multiple-choice section of the ECS1501 (Economics 1A) October/November 2014 examination, a closed-book, 2-hour paper worth 100 marks in total, for which a non-programmable pocket calculator may be used. The paper consists of 70 multiple-choice questions numbered 1 to 70 that must all be answered on the supplied mark-reading sheet using unique number 495584. The paper states that each question is worth 1,4 marks so that the 70 questions together make up the stated 100 marks (note: 70 × 1,4 = 98, not exactly 100, which appears to be a rounding inconsistency in the original paper). Below, each of the 70 individual multiple-choice items is reproduced, covering topics from basic economic concepts, demand and supply, elasticity, consumer theory, production and costs, market structures (perfect competition, monopoly, monopolistic competition) and labour markets. Under which of the following circumstances will the demand curve shift?
Oct/Nov 2014, Q101.4285714285714286 marks · multiple choice
This is the multiple-choice section of the ECS1501 (Economics 1A) October/November 2014 examination, a closed-book, 2-hour paper worth 100 marks in total, for which a non-programmable pocket calculator may be used. The paper consists of 70 multiple-choice questions numbered 1 to 70 that must all be answered on the supplied mark-reading sheet using unique number 495584. The paper states that each question is worth 1,4 marks so that the 70 questions together make up the stated 100 marks (note: 70 × 1,4 = 98, not exactly 100, which appears to be a rounding inconsistency in the original paper). Below, each of the 70 individual multiple-choice items is reproduced, covering topics from basic economic concepts, demand and supply, elasticity, consumer theory, production and costs, market structures (perfect competition, monopoly, monopolistic competition) and labour markets. Which of the following represents a determinant of supply?
Oct/Nov 2014, Q111.4285714285714286 marks · multiple choice
This is the multiple-choice section of the ECS1501 (Economics 1A) October/November 2014 examination, a closed-book, 2-hour paper worth 100 marks in total, for which a non-programmable pocket calculator may be used. The paper consists of 70 multiple-choice questions numbered 1 to 70 that must all be answered on the supplied mark-reading sheet using unique number 495584. The paper states that each question is worth 1,4 marks so that the 70 questions together make up the stated 100 marks (note: 70 × 1,4 = 98, not exactly 100, which appears to be a rounding inconsistency in the original paper). Below, each of the 70 individual multiple-choice items is reproduced, covering topics from basic economic concepts, demand and supply, elasticity, consumer theory, production and costs, market structures (perfect competition, monopoly, monopolistic competition) and labour markets. Refer to a supply-and-demand diagram for good X in which the demand curve (D) slopes downward and the supply curve (S) slopes upward. Dashed reference lines show that at a price of R7 the quantity demanded is 20 units while the quantity supplied is 60 units; the curves intersect at the equilibrium price of R5, where the quantity is 40 units; and at a price of R3 the quantity demanded is 60 units while the quantity supplied is 20 units. If the price is R3, by how many units of good X is there excess demand?
Oct/Nov 2014, Q121.4285714285714286 marks · multiple choice
This is the multiple-choice section of the ECS1501 (Economics 1A) October/November 2014 examination, a closed-book, 2-hour paper worth 100 marks in total, for which a non-programmable pocket calculator may be used. The paper consists of 70 multiple-choice questions numbered 1 to 70 that must all be answered on the supplied mark-reading sheet using unique number 495584. The paper states that each question is worth 1,4 marks so that the 70 questions together make up the stated 100 marks (note: 70 × 1,4 = 98, not exactly 100, which appears to be a rounding inconsistency in the original paper). Below, each of the 70 individual multiple-choice items is reproduced, covering topics from basic economic concepts, demand and supply, elasticity, consumer theory, production and costs, market structures (perfect competition, monopoly, monopolistic competition) and labour markets. Using the same supply-and-demand diagram for good X described above (with reference points at price R7/quantities 20 and 60, price R5/quantity 40, and price R3/quantities 60 and 20), what is the equilibrium price and quantity combination in this market?
Oct/Nov 2014, Q131.4285714285714286 marks · multiple choice
This is the multiple-choice section of the ECS1501 (Economics 1A) October/November 2014 examination, a closed-book, 2-hour paper worth 100 marks in total, for which a non-programmable pocket calculator may be used. The paper consists of 70 multiple-choice questions numbered 1 to 70 that must all be answered on the supplied mark-reading sheet using unique number 495584. The paper states that each question is worth 1,4 marks so that the 70 questions together make up the stated 100 marks (note: 70 × 1,4 = 98, not exactly 100, which appears to be a rounding inconsistency in the original paper). Below, each of the 70 individual multiple-choice items is reproduced, covering topics from basic economic concepts, demand and supply, elasticity, consumer theory, production and costs, market structures (perfect competition, monopoly, monopolistic competition) and labour markets. Still referring to this market for good X (equilibrium price R5), when the market price is above R5, which of the following applies?
Oct/Nov 2014, Q141.4285714285714286 marks · multiple choice
This is the multiple-choice section of the ECS1501 (Economics 1A) October/November 2014 examination, a closed-book, 2-hour paper worth 100 marks in total, for which a non-programmable pocket calculator may be used. The paper consists of 70 multiple-choice questions numbered 1 to 70 that must all be answered on the supplied mark-reading sheet using unique number 495584. The paper states that each question is worth 1,4 marks so that the 70 questions together make up the stated 100 marks (note: 70 × 1,4 = 98, not exactly 100, which appears to be a rounding inconsistency in the original paper). Below, each of the 70 individual multiple-choice items is reproduced, covering topics from basic economic concepts, demand and supply, elasticity, consumer theory, production and costs, market structures (perfect competition, monopoly, monopolistic competition) and labour markets. Given the demand function Qd = 20 − p and the supply function Qs = p − 6, what is the equilibrium price and quantity combination?
Oct/Nov 2014, Q151.4285714285714286 marks · multiple choice
This is the multiple-choice section of the ECS1501 (Economics 1A) October/November 2014 examination, a closed-book, 2-hour paper worth 100 marks in total, for which a non-programmable pocket calculator may be used. The paper consists of 70 multiple-choice questions numbered 1 to 70 that must all be answered on the supplied mark-reading sheet using unique number 495584. The paper states that each question is worth 1,4 marks so that the 70 questions together make up the stated 100 marks (note: 70 × 1,4 = 98, not exactly 100, which appears to be a rounding inconsistency in the original paper). Below, each of the 70 individual multiple-choice items is reproduced, covering topics from basic economic concepts, demand and supply, elasticity, consumer theory, production and costs, market structures (perfect competition, monopoly, monopolistic competition) and labour markets. Suppose the consumer's income increases, shifting the demand curve to the right so that the new demand function becomes Qd = 28 − p (with the supply function unchanged as in the previous question). What is the new equilibrium price and quantity combination?
Oct/Nov 2014, Q161.4285714285714286 marks · multiple choice
This is the multiple-choice section of the ECS1501 (Economics 1A) October/November 2014 examination, a closed-book, 2-hour paper worth 100 marks in total, for which a non-programmable pocket calculator may be used. The paper consists of 70 multiple-choice questions numbered 1 to 70 that must all be answered on the supplied mark-reading sheet using unique number 495584. The paper states that each question is worth 1,4 marks so that the 70 questions together make up the stated 100 marks (note: 70 × 1,4 = 98, not exactly 100, which appears to be a rounding inconsistency in the original paper). Below, each of the 70 individual multiple-choice items is reproduced, covering topics from basic economic concepts, demand and supply, elasticity, consumer theory, production and costs, market structures (perfect competition, monopoly, monopolistic competition) and labour markets. Regarding the impact on equilibrium price and quantity, if supply increases while demand remains unchanged, what will happen to equilibrium price and quantity?
Oct/Nov 2014, Q171.4285714285714286 marks · multiple choice
This is the multiple-choice section of the ECS1501 (Economics 1A) October/November 2014 examination, a closed-book, 2-hour paper worth 100 marks in total, for which a non-programmable pocket calculator may be used. The paper consists of 70 multiple-choice questions numbered 1 to 70 that must all be answered on the supplied mark-reading sheet using unique number 495584. The paper states that each question is worth 1,4 marks so that the 70 questions together make up the stated 100 marks (note: 70 × 1,4 = 98, not exactly 100, which appears to be a rounding inconsistency in the original paper). Below, each of the 70 individual multiple-choice items is reproduced, covering topics from basic economic concepts, demand and supply, elasticity, consumer theory, production and costs, market structures (perfect competition, monopoly, monopolistic competition) and labour markets. You are informed that Coca-Cola is a substitute for Fanta in consumption. If the price of Fanta increases, which of the following correctly explains the effects on Fanta and Coca-Cola?
Oct/Nov 2014, Q181.4285714285714286 marks · multiple choice
This is the multiple-choice section of the ECS1501 (Economics 1A) October/November 2014 examination, a closed-book, 2-hour paper worth 100 marks in total, for which a non-programmable pocket calculator may be used. The paper consists of 70 multiple-choice questions numbered 1 to 70 that must all be answered on the supplied mark-reading sheet using unique number 495584. The paper states that each question is worth 1,4 marks so that the 70 questions together make up the stated 100 marks (note: 70 × 1,4 = 98, not exactly 100, which appears to be a rounding inconsistency in the original paper). Below, each of the 70 individual multiple-choice items is reproduced, covering topics from basic economic concepts, demand and supply, elasticity, consumer theory, production and costs, market structures (perfect competition, monopoly, monopolistic competition) and labour markets. Suppose we allow the 'invisible hand' to operate and determine price. Assuming a shortage occurs, quantity demanded will do one thing and quantity supplied will do another, allowing the price to rise to its equilibrium level. Which pair of changes (quantity demanded, quantity supplied) correctly completes this statement?
Oct/Nov 2014, Q201.4285714285714286 marks · multiple choice
This is the multiple-choice section of the ECS1501 (Economics 1A) October/November 2014 examination, a closed-book, 2-hour paper worth 100 marks in total, for which a non-programmable pocket calculator may be used. The paper consists of 70 multiple-choice questions numbered 1 to 70 that must all be answered on the supplied mark-reading sheet using unique number 495584. The paper states that each question is worth 1,4 marks so that the 70 questions together make up the stated 100 marks (note: 70 × 1,4 = 98, not exactly 100, which appears to be a rounding inconsistency in the original paper). Below, each of the 70 individual multiple-choice items is reproduced, covering topics from basic economic concepts, demand and supply, elasticity, consumer theory, production and costs, market structures (perfect competition, monopoly, monopolistic competition) and labour markets. Suppose scientists have proven that eating fatty meats causes obesity, and the South African Heart Association launches a successful campaign, aided by South African celebrities such as Kaiser Chief's Itumeleng Khune and Springbok Bryan Habana, urging people to stop eating fatty meats. Given this, one would expect which of the following outcomes?
Oct/Nov 2014, Q211.4285714285714286 marks · multiple choice
This is the multiple-choice section of the ECS1501 (Economics 1A) October/November 2014 examination, a closed-book, 2-hour paper worth 100 marks in total, for which a non-programmable pocket calculator may be used. The paper consists of 70 multiple-choice questions numbered 1 to 70 that must all be answered on the supplied mark-reading sheet using unique number 495584. The paper states that each question is worth 1,4 marks so that the 70 questions together make up the stated 100 marks (note: 70 × 1,4 = 98, not exactly 100, which appears to be a rounding inconsistency in the original paper). Below, each of the 70 individual multiple-choice items is reproduced, covering topics from basic economic concepts, demand and supply, elasticity, consumer theory, production and costs, market structures (perfect competition, monopoly, monopolistic competition) and labour markets. Refer to a supply-and-demand diagram in which the supply curve decreases from S1 to S2 (shown by an arrow pointing toward the origin) while the demand curve simultaneously decreases from D1 to D2 (also shown by an arrow pointing toward the origin). What is the combined impact of this decrease in supply from S1 to S2 and simultaneous decrease in demand from D1 to D2 on equilibrium price and quantity?
Oct/Nov 2014, Q221.4285714285714286 marks · multiple choice
This is the multiple-choice section of the ECS1501 (Economics 1A) October/November 2014 examination, a closed-book, 2-hour paper worth 100 marks in total, for which a non-programmable pocket calculator may be used. The paper consists of 70 multiple-choice questions numbered 1 to 70 that must all be answered on the supplied mark-reading sheet using unique number 495584. The paper states that each question is worth 1,4 marks so that the 70 questions together make up the stated 100 marks (note: 70 × 1,4 = 98, not exactly 100, which appears to be a rounding inconsistency in the original paper). Below, each of the 70 individual multiple-choice items is reproduced, covering topics from basic economic concepts, demand and supply, elasticity, consumer theory, production and costs, market structures (perfect competition, monopoly, monopolistic competition) and labour markets. Suppose that good rains are experienced by maize farmers in the Eastern Cape. One would expect that there will be a certain change in the market, which results in a particular effect on the equilibrium price and a corresponding effect on the equilibrium quantity. Which of the following correctly completes this statement?
The full Spot Map and the marks by year.