QUESTION 1 Due to the electricity crisis, some people have opted to buy gas stoves, ensuring that they can cook when it

[answerhappygod]

Question 1 Due To The Electricity Crisis Some People Have Opted To Buy Gas Stoves Ensuring That They Can Cook When It 1 (53.41 KiB) Viewed 13 times

QUESTION 1 Due to the electricity crisis, some people have opted to buy gas stoves, ensuring that they can cook when it is convenient and always being able to boil a pot of water. Using the below-mentioned table answer the questions that follow. Please note: You must draw only one graph with 2 demand and 2 supply curves. Price of gas stoves R2500 R2000 R1500 R1000 R500 R250 Quantity demanded of gas stoves (000's) 2 4 6 8 10 12 Quantity supplied of gas stoves (000's) 5 4 3 2 1 0 (a) Draw a demand and supply graph for gas stoves. Show your equilibrium point (E1) (b) Due to the extended electricity outages, the demand for gas stoves doubles at each price level. Show this increase in demand and the new equilibrium point (E2) (c) The government decides to subsidise gas stoves, causing an increase in supply of gas stoves by 50%. Show this increase in supply and the new equilibrium point (E3) (d) Calculate the price elasticity of demand if the price decreases from R1500 to R1000, causing the quantity demanded to increase from 6 to 8. (e) What factors can influence the demand for gas stoves? (4) (3) (3) (5) (5) [20]