Hi there :) I'm doing revision for a test and I'm really struggling with this old assignment. Could you please provide me with an answer key?

1. What affects the price elasticity of demand for a good? [1] duration for demand decision. [2] substitutability of resources. [3] time elapsed since the income change. [4] the closeness of substitutes. 2. The price elasticity of demand is inelastic if... 3 [1] income elasticity of demand is negative. [2] price elasticity of demand is positive but less than 1. [3] price elasticity of demand is negative. [4] price elasticity of demand is positive but greater than 1. 3. John owns a bread bakery. When he increases the price of a loaf of bread from R10 to R12, the percentage in the quantity demanded is 5%. Calculate the price elasticity of demand for bread. [1] 0.275 [2] 0.050 [3] 0.300 1 0.250 4. Yonela consumes cheese cake and tea. When the price of cheese cake increases from R155 to R160, the quantity demand of teabags decreases from 10 to 6. Then we can say that... cheesecake and tea are substitutes. [2] cheesecake and tea are unrelated. [3] cheesecake and tea are compliments. [4] cheesecake and tea are normal goods. 5. Given that Rumbi's budget line is 25 # @cake + Ores and the price of tea is R10. What is Rumbi's income and the price of cake? [1] Income = R250 and Price of cake = R40. [2] Income = R100 and Price of cake = R10. [3] Income = R250 and Price of cake = R5. [4] Income = R100 and Price of cake = R40. 6. The marginal utility per rand of good A exceeds the marginal utility per rand of good B. Which of the following statement(s) is/are correct? (1] To establish equilibrium, the one must consume more of good A. ECS2601/001/3/2021 (2] To establish equilibrium, one must consume more of good B. [3] This means the consumer is consuming more of good A and less of good B. [4] One must consume less of both good A and good B.Use the diagram below to answer questions 7 and 8. Pie 20 IC2 12 10 00 BC BC. 10 Pizza 7. On BC the price of a pizza is R20 and the price of a pie is R10. What is the new price of pizza reflected in BCz? [1] R20. [2] R40. 5 [3] R50. [4] R12. 8. Which of the following statement(s) is/are correct about the pizza and pie above? [1] Pizza and pie are compliment goods. [2] Pizza and pie are inferior goods. [3] Pizza and pie are normal goods. [4] Pizza and pie are perfect substitutes. Use the information below to answer questions 9 and 10 below. The market demand and supply for renting apartments in the Rosebank area is given as: Demand: P = 12 000 - 50 Supply: P = 800 + 30, 9. Calculate the equilibrium quantity. [1] 2 400. [2] 1 100. [3] 4 100. [4] 1 400. 10. Calculate the equilibrium price. [1] R5 000. [2] R4 100. [3] R800. [4] R12 000.11. Which one of the following statements about graphs of short-run cost curves is false? 6 ECS2601/001/3/2021 [1] The AFC at each output equals the gap between the SAC and AVC curves at that output. [2] The SMC curve lies above the MVC curve. [3] The MVC curve intersects the lowest point on the AVC curve. [4] The SMC curve intersects the lowest point on the SAC curve. 12. In which of the following cases would the income and substitution effects for books have the same direction of change? [1] When books are a normal, ordinary good and the price of books increases. [2] When books are an inferior, ordinary good and the price of books increases. [3] When books are a Giffen good and the price of books increases. [4] None of the above. 13. Which one of the following statements about economies of scale is false? [1] A firm may have economies of scale, even if it does not have increasing returns to scale. [2] A firm may initially have economies of scale and later have diseconomies of scale. [3] An industry where economies of scale are exhausted at an output that is low relative to the industry output may have many small firms. [4] Throughout the output range where a firm enjoys economies of scale, its long-run marginal cost curve, LMC, will slope downwards. 14. Which of the following does the principle of diminishing marginal utility say about what happens when a consumer consumes more of a product? [1] The consumer's total utility will be unaffected. [2] The consumer's total utility will diminish. [3] The consumer's marginal utility will diminish. [4] The consumer's marginal utility will become negative. 7 15. Which one of the following factors does not affect the slope and position of a consumer's budget line between two products, A and B? (1] The shape and position of the consumer's indifference curves. [2] The price of A [3] The price of B. [4] The consumer's income. 16. A consumer plots an indifference map between two products, A and B, and marks points to show the combinations of A and B that the consumer would buy if the price of A changed but the price of B remained the same. The consumer then plots a line through these points. This curve is called... [1] a budget line. [2] a demand curve. [3] a price consumption curve. [4] an indifference curve.17. Ceteris paribus, every time the price of cashew nuts falls by R1/kg, the quantity of cashew nuts demanded increases by 10 kg per day. From this we can infer that ........ [1] the higher the price of cashews, the more price inelastic the demand curve becomes. [2] the price elasticity of demand for cashews is constant. [3] as the price rises, demand at first becomes more price elastic and then later becomes less price elastic. [4] as price falls, demand becomes less price elastic. 8 ECS2601/001/3/2021 18. Suppose that the price of rice increases. The sign of the substitution effect for rice will be [1] negative, if rice is a Giffen good. [2] negative, if rice is a normal good. [3] Both (1) and (2) are true. [4] Neither (1) nor (2) is true. 19. Which one of the following factors does not help to explain why most indifference curves between consumer products slope down to the right and are curved rather than straight? [1] The principle of diminishing marginal utility. [2] The fact that both products concerned are regarded as desirable. [3] The fact that most pairs of products are not perfect substitutes. [4] The fact that the further an indifference curve is from the origin, the more total utility it represents. 20. A firm is currently using a combination of inputs where the slope of the isoquant is steeper than the slope of the isocost curve. The firm can increase output without changing costs by [1] using more of the input on the horizontal axis and less of the input on the vertical axis. [2] using more of the input on the vertical axis and less of the input on the horizontal axis. [3] using more of both inputs. [4] using less of both inputs