Question: QUESTION 3(20 Marks) 3.1 Explain using a production possibility curve (PPC) diagram, the economic problem of scarcity, choice and opportunity cost.(10 marks)3.2 Distinguish between the

QUESTION 3(20 Marks)

3.1 Explain using a production possibility curve (PPC) diagram, the economic problem of scarcity, choice and opportunity cost.(10 marks)3.2 Distinguish between the following(5 marks) 3.2.1 Change in demand and a change in quantity demanded for laptops.

3.3 Discuss ANY FIVE (5) factors that can affect the supply of laptops in your country.(5 marks)

QUESTION 4(20 Marks)

4.1 Assuming the equilibrium price of a 5kg bag of mealie meal is R45Explain, with the aid of well labelled diagrams, what will happen if the government:

4.1.1 Fixes a minimum price of R40 for a 5kg bag of mealie meal.(7 marks) 4.1.2 Fixes a maximum price of R40 for a 5kg bag of mealie meal.(7 marks) 4.1.3 From 4.1.2 above, highlight some of the reasons why the government would fix a maximum price.(6 marks)

QUESTION 5(20 Marks)

5.1 With the aid of well labelled diagrams, explain the FIVE (5) categories of price elasticity of demand.(15 marks) 5.2 Use the concept of cross elasticity of demand to distinguish between complements and substitutes.(5 marks)QUESTION 6(20 Marks)

6.1 List ANY SIX (6) conditions necessary for perfect competition to exist.(6 marks)6.2 Explain the implications and short comings of the kinked demand curve in an oligopolistic market.(7 marks) 6.3 Differentiate between monopoly and monopolistic competition(7 marks)

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