Economics Past Questions and Answers

one objective of organisation of patroleum exporting countries (OPEC) is to?

which of the following resources is renewable

the negative effects of mining in wast A frica does not include?

A dealer in deep freezers increased the price of his product from $450 to $500 and sales dropped from 800 units to 600 units a week. <br/>Use the information above to answer the questions that follow.<br/>(a)(i) Calculate the price elasticity of demand<br/>(ii) What type of elasticity is it? Explain your answer<br/>(b)Calculate the (i) total revenue of the company before and after price increase; (ii) change in total revenue. <br/>(c) What is the effect of the increase in price on the total revenue?<br/>(d) State two factors influencing price elasticity of demand.

The market for apples is represented by the following demand and supply functions:<br/>Qd = 30 - p;<br/>Qs = 15 + 2p.<br/>(a) Prepare a demand and supply schedule for the market, given the prices $2.00, $4.00 and $7.00.<br/>(b) (i) Determine the equilibrium price and equilibrium quantity of apples in the market.<br/>(ii) If the price of apple is fixed at $3.00, what will be the excess demand or excess supply.<br/>(c) Suppose the demand function changed to Qd = 40 - p. Using the prices in (a) above:<br/>(i) prepare a new demand schedule;<br/>(ii) does it represent an increase or a decrease in demand?<br/>(iii) explain your answer in (c) (ii) above.