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Tutorial Chapter 4

This document is a tutorial chapter focused on demand and supply analysis, including definitions, determinants, and concepts related to equilibrium. It contains questions that require drawing demand and supply curves, explaining the law of demand and supply, and analyzing consumer and producer surplus. Additionally, it explores the effects of income changes on normal and inferior goods, as well as the impact of price changes on related goods.

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Arno Arno
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5 views3 pages

Tutorial Chapter 4

This document is a tutorial chapter focused on demand and supply analysis, including definitions, determinants, and concepts related to equilibrium. It contains questions that require drawing demand and supply curves, explaining the law of demand and supply, and analyzing consumer and producer surplus. Additionally, it explores the effects of income changes on normal and inferior goods, as well as the impact of price changes on related goods.

Uploaded by

Arno Arno
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Tutorial chapter 4

Question 1 (4 marks)

Define the following:

1. Demand

2. Quantity demanded

3. Law of demand

4. Supply

Question 2 (6 marks)

List and briefly explain any three determinants of demand.

3. SECTION B: DEMAND ANALYSIS (15 MARKS)

Question 3 (8 marks)

The following table shows a demand schedule:

Price (R) Quantity Demanded

1 6

2 5

3 4

4 3

5 2

3.1 Draw the demand curve (4 marks) 3.2 Describe the relationship between price and
quantity demanded (4 marks)

Question 4 (7 marks)

Explain the difference between:

• A movement along the demand curve

• A shift of the demand curve

Use examples to support your answer.

4. SECTION C: SUPPLY ANALYSIS (15 MARKS)


Question 5 (8 marks)

The following table represents a supply schedule:

Price (R) Quantity Supplied

1 500

2 1000

3 1500

4 2000

5 2500

5.1 Draw the supply curve (4 marks) 5.2 Explain the law of supply (4 marks)

Question 6 (7 marks)

Discuss any three factors that cause a shift in the supply curve.

5. SECTION D: EQUILIBRIUM ANALYSIS (20 MARKS)

Question 7 (10 marks)

Given the following equations: Qd = 100 − 5P Qs = 20 + 5P

7.1 Calculate the equilibrium price (5 marks) 7.2 Calculate the equilibrium quantity (5
marks)

Question 8 (10 marks)

Explain the following concepts:

• Excess demand (shortage)

• Excess supply (surplus)

Use diagrams in your explanation.

6. SECTION E: SURPLUS ANALYSIS (10 MARKS)

Question 9 (5 marks)

Define:

• Consumer surplus

• Producer surplus
Question 10 (5 marks)

Using a diagram, illustrate consumer surplus and producer surplus.

7. SECTION F: APPLICATION QUESTIONS (10 MARKS)

Question 11 (5 marks)

Explain how an increase in income affects:

• Normal goods

• Inferior goods

Question 12 (5 marks)

Analyse the effect of the following:

• An increase in the price of butter on margarine demand

• An increase in the price of CDs on CD players

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