12:030 GO B/S 12 A 32 B C : 76. The incidence of a tax describes: (a) the frequency of its payment. (b) the rate of tax (c) the fairness of tax (d) how much is raised by it. (e) who eventually bears the burden of it. 77. Yoggipear and Orchard Cow are two rival brands of flavoured yoghurt drinks, which have a cross elasticity of demand of + 2. The price of Yoggipear rises from 20 pence to 30 pence per carton. What will be the percentage increase in demand for similar- sized cartons of Orchard Cow? (a) 20% (b) 25% (c) 75% d) 100% (e) 50% 14 I COMPILED BY DR ERIC ADU AGYEMANG GRASAG PRESIDENT HOPEFUL, 2024. I PEN-K'S1/167-1022 CANDIDATE NUMBER: Questions 78 to 80 are based on the following diagram, showing a demand curve, ab, where k is midway PRICE (per unit) between a and b. QUANTITY DEMANDED (per period) 78. It can be deduced from the diagram that: (a) market price will be Oc (b) the price elasticity of demand is constant c) the producer's total revenue would fall if price fell from Oc to Of (d) the price elasticity of demand is higher at point g than at point d (e) the price elasticity of demand is the same only at points a and b. 79. If the market price fell from Oc to Of (with a corresponding rise in the quantity exchanged from Oe to Oh), consumer surplus would: (a) rise by the area fag (b) rise by the area jog (c) fall by the area fcdj (d) rise by the area fcdg. (e) change by the difference in areas between eigh and fcdj 80. Which of the following can be shown from the diagram? the product is a normal good price falls as a result of an increase in demand WN . demand expands as a result of a fall in price (a) 1 only (b) 3 only (c) 2 and 3 only (d) I and 3 only (e) all of them Edit Annotate Fill & Sign Convert All O O