ECONOMICS. STUDENT ID: [Pick the date]. Question 1- Opt

ECONOMICS
STUDENT ID:
[Pick the date]

Question 1- Option C
Question 2 - Option D
Question 3 – Option D
Question 4- Option E
Question 5- Option A
Question 6 – Option D
Question 7 – Option A
Question 8 – Option C
Question 9 – Option C
Question 10 – Option C
Question 11 – Option D
Question 12 – Option A
Question 13 – Option E
Question 14 – Option E
Question 15 – Option A
Question 16 - The requisite table is indicated below (Assuming that answers have to be
rounded to zero decimal place)

Question 17 – The elasticity computation is shown below.
Price at point A = 105,000/1500 = R 70
Price at point B = 130,000/2000 = R 65
Price at point C = 150,000/2500 = R 60
Price at point D = 165,000/3,000 = R 55
Price at point E = 175,000/3,500 = R 50
Price at point F = 180,000/4,000 = R 45
Price at point G = 180,000/4,500 = R 40
Price at point H = 175,000/5,000 = R 35
Price at point I = 165,000/5,500 = R 30

Elasticity of demand between A and B = (25000/105000)/(-5/70) = -3.33 (Please adjust the
decimals as per the requirement)
Elasticity of demand between B and C = (20000/130000)/(-5/65) = -2
Elasticity of demand between C and D = (15000/150000)/(-5/60) = -1.2
Elasticity of demand between D and E = (10000/165000)/(-5/55) = -0.67 (Please adjust the
decimals as per the requirement)
Elasticity of demand between E and F = (5000/175000)/(-5/50) = -0.29 (Please adjust the
decimals as per the requirement)
Elasticity of demand between F and G = 0
Elasticity of demand between G and H= (-5000/180000)/(-5/40) = 0.22 (Please adjust the
decimals as per the requirement)
Elasticity of demand between H and I = (-10000/175000)/(-5/35) = 0.4
Question 18 – The inflation computation is shown below.
Inflation in 2016 = [(96650-91000)/91000]*100 = 6.21% (Please adjust the answer as per the
decimal places allowed)
Inflation in 2017 = [(99930-96650)/96650]*100 = 3.39% (Please adjust the answer as per the
decimal places allowed)
Inflation in 2018 = [(104275-99930)/99930]*100 = 4.35% (Please adjust the answer as per
the decimal places allowed)
Question 19 –
a) Pd = 8500 – 250Q
PS = 1500 + 250Q
b) Pd = 10000 – 250Q

Ps = 2000 + 250Q
Question 20
a) P = R 200
Q = 90
b) Yes, the firm is able to generate profit to the tune of R 2250.
Question 21 – Monopoly