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n a perfectly competitive market for widgets, the market price is R15. Use the cost information for a firm producing widgets in this market given in the table below and answer the question that follows.
A small farmer is more likely to operate in a perfectly competitive market than a company like AB
inBev because...
When the price of commodity B rises by 10%, the total revenue received by firms that sell commodity B rises by 5%. The demand for commodity B is therefore...
An increase in supply...
a) indicates that more is supplied at higher prices.
b) indicates that more is supplied at lower prices.
c) indicates that more is supplied at all prices.
d) is illustrated by an upward shift of the supply curve
When the price of commodity B rises by 10%, the total revenue received by firms that sell
commodity B rises by 5%. The demand for commodity B is therefore...
a) perfectly elastic.
b) unitary elastic
c) inelastic
d) elastic
A small farmer is more likely to operate in a perfectly competitive market than a company like AB inBev because...
An increase in supply... (4 marks) a) indicates that more is supplied at higher prices. b) indicates that more is supplied at lower prices. c) indicates that more is supplied at all prices. d) is illustrated by an upward shift of the supply curve.
Which of the following statements is incorrect? (4 marks) a) The three major flows in the economy are total production, total income and total spending. b) There are two sets of markets in a simple economy: goods and services markets and factor markets. 1.8 c) In the simple circular flow of economic activity, real" flows of goods and factors, and financial flows, move in opposite direction. d) Firms are buyers in the goods markets and sellers in factor markets, while households are buyers in factor markets and sellers in goods markets.
An increase in supply...
indicates that more is supplied at higher prices.
indicates that more is supplied at lower prices.
indicates that more is supplied at all prices.
is illustrated by an upward shift of the supply curve.
Consumer surplus indicates that... (4 marks) a) more will be demanded at lower prices than at a higher prices. b) it is impossible to increase consumer well-being by changing the way in which income is spent. c) consumers often get more value from a good than is represented by the price they pay for that good. d) the allocation of resources is decided by the interaction of buyers and sellers.
