Professional Documents
Culture Documents
1. A local spaza shop orders 400 cases of Cola each week and sells them at a price of
R6.00 per case. At the end of the first week, they have only sold 320 cases. What
economic situation is the spaza shop facing, and what will have to happen to price in
order for equilibrium to be attained?
3. Which of the following events will cause an increase in the market demand for Savanna
(a brand of beer)?
7. Which of the following will NOT shift the market supply curve of good X?
8. The demand and supply curves are represented by the following equations: Qd =
100 – P and Qs = 50 + P
Question (a)
A. 150
B. 75
C. 50
D. 25
E. 10
Question (b)
A. 150
B. 75
C. 50
D. 25
E. 10
Use the following information to answer questions 9a and 9b.
9. The demand and supply curves are represented by the following equations:
Qd = 30 – 2P and Qs = 10 + 2P
Question (a)
A. 5
B. 10
C. 15
D. 20
E. 25
Question (b)
A. 5
B. 10
C. 20
D. 30
E. 40
10 Demand is the quantity of goods:
A. desired by consumers.
B. ordered by consumers in a particular period.
C. consumers are willing and able to buy at particular prices in a certain
period.
D. that consumers require in order to survive.
ANSWER
Demand vs. Quantity Demanded
Quantity Demanded = the quantity of product consumers are willing and
able to buy at a specific price
Demand = every combination of prices and quantities consumers are willing
and able to buy (I.E. THE DEMAND CURVE)
Changes to Quantity Demanded
The ONLY thing that causes changes to Quantity demanded is PRICE
2. What are the causes of changes to DEMAND? Or, what causes the Demand Curve
to shift?
ANSWER
Changes in Tastes/preferences,
Changes in Price of related goods,
Changes in Consumer’s income,
Changes in expected future prices.
Changes in population
Changes in distribution of income
4. What are the causes of changes to SUPPLY? Or, what causes the Supply Curve
to shift?
ANSWER
Technology
Price of alternative output
Price of factors of production and other input
Expected future prices of the product
5. What happens to the market equilibrium price and/or quantity if there is a change
in the demand or supply curve?
ANSWER
When there are changes to either the demand curve or supply curve or both
Changes in the market equilibrium price can occur
Changes in the market equilibrium quantity can occur
Changes to BOTH market equilibrium price AND quantity can occur
END