- Question 1 1 Drop In Price Leads To A If The Price Elasticity Of Demand For Omo Washing Powder Is 3 0 A Rise In The Qua 1 (64.64 KiB) Viewed 43 times
QUESTION 1 1 drop in price leads to a If the price elasticity of demand for Omo washing powder is 3.0, a rise in the quantity demanded. A. R1 000; 333-unit B. 12 per cent; 4 per cent C. 12 per cent; 36 per cent D. R1 000; 3000-unit Question 2 What does the price elasticity of demand measure? ? A. how sensitive the quantity demanded of a good is to changes in income B. how sensitive the price is to changes in the quantity demanded C. the slope of the demand curve D. the responsiveness of the quantity demanded of a good to changes in the price of the good QUESTION 3 A possible reason that the demand for petrol is inelastic is because A. petrol is a luxury good. B. households spend a small proportion of their income on petrol. C. a large proportion of the petrol South Africa consumes is imported. D. there is no close substitute for petrol. QUESTION 4 If a 5 per cent fall in the price of bananas results in a 2 per cent increase in the quantity of bananas demanded, then the price elasticity of the demand for bananas is relatively low. A. True B. False Question 5 In elastic demand, as price falls, total revenue of suppliers rises. A. True B. False QUESTION 6 If a lower price of crude oil leads to lower oil revenue for oil-producing countries, this suggests that the world demand for oil is A. inelastic . B. elastic. C. perfectly elastic. D. unitary elastic. Question 7 Bread has the same price elasticity of demand as food. A True B. False QUESTION 8 Price elasticity of demand is a measure of the responsiveness of quantity demanded to changes in price. A True B. False