- Question 9 A Perfectly Elastic Demand Curve Is Horizontal Ie Parallel To The Quantity Axis A True B False Question 1 (24.4 KiB) Viewed 196 times
- Question 9 A Perfectly Elastic Demand Curve Is Horizontal Ie Parallel To The Quantity Axis A True B False Question 2 (45.35 KiB) Viewed 196 times
- Question 9 A Perfectly Elastic Demand Curve Is Horizontal Ie Parallel To The Quantity Axis A True B False Question 3 (35.05 KiB) Viewed 196 times
Question 9 A perfectly elastic demand curve is horizontal (ie parallel to the quantity axis). A. True B. False QUESTION 10 If a 10 per cent increase in student fees results in a 15 per cent drop in student enrolment at university it can be concluded that the demand for university study is elastic. A. True B. False Question 11 If the price elasticity of the demand for chocolates is greater than one, then the manufacturers of chocolates can increase their total revenue by raising the price of chocolates A. True B. False QUESTION 12 If a 10 per cent increase in the price of good A results in a 5 per cent reduction in the quantity of A demanded, then the price elasticity of the demand for A is more than one. A. True B. False
Question 13 The more (or better) substitutes a good has, the greater the price elasticity of the demand for the good will be A. True B. False QUESTION 14 Use the following demand schedule on pens to answer the question. Price (R) 20 19 18 17 16 Quantity demanded (pens) 5 000 10 000 15 000 18 000 22 000 What is the price elasticity of demand for pens in the price range R19 to R16? Use the formula for arc elasticity. (Ignore the negative sign and round off to 2 decimal places) Answer: Question 15 This question is based on the following table which shows the demand schedule for ice cream cones. Price R1 R2 R3 R4 RS Quantity demanded 100 80 60 40 20 What is the price elasticity of demand when the price changes from R4 per ice cream cone to R5 per ice cream cone? Use the formula for arc elasticity. (Ignore the negative sign and round off to 2 decimal places.) Answer:
QUESTION 16 This question is based on the following information which indicates the demand for airline tickets between Johannesburg and Cape Town for business travellers and holiday travellers. Price (P) 1 700 3 000 Business travellers Quantity demanded 1 600 1 400 Holiday travellers Quantity demanded 1 200 600 Using the midpoint method, calculate the price elasticity for business travellers and holiday travellers if the price increases from R1 700 to R3 000. The price elasticity for A. business traveller and holiday travellers are both inelastic. B. business travellers and holiday travellers are both elastic. C. business travellers are inelastic while for holiday travellers it is elastic. D. business travellers are elastic while for holiday travellers it is inelastic.