Question 5 (a) Using the information in the table, sketch the demand and supply curves for houses in Country A. (4) Pric

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Question 5 A Using The Information In The Table Sketch The Demand And Supply Curves For Houses In Country A 4 Pric 1 (57.21 KiB) Viewed 36 times

Question 5 (a) Using the information in the table, sketch the demand and supply curves for houses in Country A. (4) Prices of houses (R000's) 250 Quantity demanded (000's) Quantity supplied (000's) 2 5 200 4 4 150 6 3 8 2 100 50 10 1 (b) If the sellers of houses charge R150 000 per house, what is the surplus r shortage on the market? (3) (c) What is the equilibrium price for houses? (3) (d) When building societies decide to decrease the bond rates by 1,5%, the demand for houses doubles at each price level. Calculate the new quantity demanded and draw the new demand curve on the same graph. (3) le) What is the new equilibrium quantity of houses? (3) (5) The government decides to decrease the transfer costs of property. This causes the supply of houses to increase by 50% for each price level. Calculate the new quantity supplied and draw the new supply curve on the same graph. (3) Calculate the price elasticity of demand if a price decrease from R150 to R100 causes the quantity demanded to increase from 6 to 8. (3) Which type of price elasticity is applicable? Give a reason. (3) [25] h) 3 ]