(a) Using the information in the table, sketch the demand and supply curves for houses in...
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(a) Using the information in the table, sketch the demand and supply curves for houses in Country A. (4) Prices of houses (R000's) 250 200 150 100 50 Quantity demanded (000's) 2 4 6 C COLLEGE - February 2023 8 10 Quantity (b) b) If the sellers of houses charge R150 000 per house, what is the surplus r shortage on the market? (3) (c) What is the equilibrium price for houses? (2) (d) When building societies decide to decrease the bond rates by 1,5%, the demand for houses supplied (000's) 5 doubles at each price level. Calculate the new quantity demanded and draw the new demand curve on the same graph. (4) (e) What is the new equilibrium quantity of houses? (2) (f) The government decides to decrease the transfer costs of property. This causes the supply of houses to increase by 50% for each price level. Calculate the new quantity supplied and draw the new supply curve on the same graph. (3) (g) Calculate the price elasticity of demand if a price decrease from R150 to R100 causes the quantity demanded to increase from 6 to 8.(2) (h) Which type of price elasticity is applicable? Give a reason. (3) [25] (Hotel Accounting 1): (FE_DL_ECON_NQF) (A-FE_DL ECON_NQF-B) (a) Using the information in the table, sketch the demand and supply curves for houses in Country A. (4) Prices of houses (R000's) 250 200 150 100 50 Quantity demanded (000's) 2 4 6 C COLLEGE - February 2023 8 10 Quantity (b) b) If the sellers of houses charge R150 000 per house, what is the surplus r shortage on the market? (3) (c) What is the equilibrium price for houses? (2) (d) When building societies decide to decrease the bond rates by 1,5%, the demand for houses supplied (000's) 5 doubles at each price level. Calculate the new quantity demanded and draw the new demand curve on the same graph. (4) (e) What is the new equilibrium quantity of houses? (2) (f) The government decides to decrease the transfer costs of property. This causes the supply of houses to increase by 50% for each price level. Calculate the new quantity supplied and draw the new supply curve on the same graph. (3) (g) Calculate the price elasticity of demand if a price decrease from R150 to R100 causes the quantity demanded to increase from 6 to 8.(2) (h) Which type of price elasticity is applicable? Give a reason. (3) [25] (Hotel Accounting 1): (FE_DL_ECON_NQF) (A-FE_DL ECON_NQF-B)
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b If sellers charge R150 000 per house we can determine the surplus or shortage by comparing the quantity demanded and quantity supplied ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
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