Assessment Questions

1.Summarize five exceptions to the law of demand

2. Distinguish between 'own price elasticity of demand ' and 'cross price elasticity of demand'

3. Outline four factors that would lead to a rightward shift in the demand curve

4. Outline four factors that determine the price elasticity of demand of a commodity

5. Distinguish between a 'price ceiling ' and a 'price flour'

6. Define the term 'consumer surplus'

7. Highlight three exceptions to the law of diminishing marginal utility

8. Outline four limitations of the cardinal approach to the theory of consumer behavior

9. Outline four assumptions underlying consumer equilibrium

10. Examine five factors that are likely to influence the cost behavior of a firm

11. With the aid of appropriate diagrams describe three properties of indifference curves

12. Explain four applications of indifference curve analysis in economic decision making

12. State the law of diminishing marginal utility