Answer Happy

Table 6.1 shows the quantity of hand cream demanded and supplied. Price R25 R30 R35 R40 R45 B. 10 C.5 Quantity demanded per month Quantity supplied per New quantity supplied per (000s) month (000s) month (000s) QUESTION 7 400 360 320 280 240 320 360 400 As a result of an increase in packaging costs for the hand creams, supply decreased by 80 000 at all prices. Calculate the change in equilibrium price given the increase in packaging costs. A. 6 440 480 (4 Marks) Cookies and Cream Enterprise is currently a profit maximising firm. They have decided to change their objective to sales maximisation, it can be deduced that Cookies and Cream Enterprise will move from setting prices at which A. marginal revenue equals zero to where marginal revenue equals marginal costs B. marginal revenue equals marginal costs to where marginal revenue equals zero C. marginal revenue equals marginal costs to where average revenue equals average costs D. average revenue equals average costs to where marginal revenue equals marginal costs