ECO111EDue: Friday (04/06/21)

Tutorial 3

Answer the following questions by selecting the appropriate answer from the list below.

Question 1

There are 10 000 seats available at Centre Court for the Wimbledon Tenn

is Championships.The price per ticket is fixed by the organisers.The supply of seats is thus:

A.completely elastic

B.elastic

C.unitarily elastic

D.inelastic

E.completely inelastic

Question 2

If the price of the seats in the question above is fixed below the equilibrium price, there will be:

A.an excess demand for seats.

B.an excess supply of seats.

C.no scope for the development of a black market.

D.no need to ration the tickets.

E.a lot of empty seats.

Question 3

If the price of the seats is fixed above the equilibrium price, there will be:

A.an excess demand for seats.

B.an excess supply of seats.

C.scope for the development of a black market.

D.a need to ration the tickets.

E.no empty seats.

Question 4

Which one of the following commodities will have the lowest price elasticity of demand?

A.Castle Lite beer

B.Light beer

C.Beer

D.Alcoholic drink (including beer)

Question 5

When the price of commodity A is cut by 10%, household spending on A falls by 10%.This is an example of:

A.perfectly elastic demand.

B.elastic demand.

C.unitary elasticity of demand.

D.inelastic demand.

E.perfectly inelastic demand.

Question 6

When the price of commodity B rises by 10%, the revenue received by firms that sell B rises by 5%.This is an example of:

A.perfectly elastic demand.

B.elastic demand.

C.unitary elasticity of demand.

D.inelastic demand.

E.perfectly inelastic demand.

Question 7

When the price of commodity C rises by 10%, the quantity demanded falls by 18%. This is an example of:

A.perfectly elastic demand.

B.elastic demand.

C.unitary elasticity of demand.

D.inelastic demand.

E.perfectly inelastic demand.

Question 8

Overproduction of maize causes farmers' incomes to fall.This is an example of:

A.perfectly elastic demand.

B.elastic demand.

C.unitary elasticity of demand.

D.inelastic demand.

E.perfectly inelastic demand.

Question 9

A cut in train fares leaves the total revenue from train fares the same as before.This is an example of:

A.perfectly elastic demand.

B.elastic demand.

C.unitary elasticity of demand.

D.inelastic demand.

E.perfectly inelastic demand.

Question 10

A university increases its fees, but finds that just as many students enrol as previously. This is an example of:

A.perfectly elastic demand.

B.elastic demand.

C.unitary elasticity of demand.

D.inelastic demand.

E.perfectly inelastic demand.