PLAGIARISM - ALLOWABLE TURNITIN SIMILARITY INDEX IS 20%. STUDENTS MUST HAND IN ASSIGNMENT IN WORD OR PDF FORMAT USING THE DROP BOX. THE ASSIGNMENT MUST BE TYPED BUT THE GRAPHS CAN BE HAND DRAWN.Graphs...

PLAGIARISM - ALLOWABLE TURNITIN SIMILARITY INDEX IS 20%.

STUDENTS MUST HAND IN ASSIGNMENT IN WORD OR PDF FORMAT USING THE DROP BOX. THE ASSIGNMENT MUST BE TYPED BUT THE GRAPHS CAN BE HAND DRAWN.Graphs should be used, wherever possible, to support your explanation

QUESTION 1

1. Explain the concept of opportunity cost and reflect on an occasion in recent weeks where the concept of opportunity cost applied to you.2 Marks


2. Is causation the same as correlation? Explain using example(s).2Marks


3. Give an example of a normative and a positive statement that you have used before. Do not use the examples in power point slides discussed in class.1 Mark

QUESTION 2

Graphically represent and explain the concepts of “a change in quantity demanded” and “a change in demand” and reflect on an occasion where the concepts applied to you. 2 Marks

QUESTION 3

Ceteris paribus, use demand and supply graphs to illustrate and explain why the price of watermelon decreases in summer even though the demand for watermelon increases.2 Marks

QUESTION 4

Ceteris Paribus. Assume because of an increase in the demand for e-scooters, the government on safety grounds, has also increase the tax on e-scooter manufacturers. Use demand and supply analysis to graphically represent and explain the impact on price and quantity in the market for e-scooters. (HINT: there is more than one possibility to the changes in price and quantity).3 Marks

QUESTION 5

1. In many countries, governments set the fares that taxi owners/drivers can charge. At various times, taxi owners/drivers stage protests asking for an increase in taxi fares because they believe it will increase their revenue. Graphically represent and explain what taxi owners/drivers are assuming about the price elasticity of demand for taxi rides?2 Marks


2. If you owned a business, explain how you will apply your understanding of price elasticity of demand in your pricing policy.1 Mark

QUESTION 6

1. The COVID 19 virus has also resulted in a large increase in the price of eggs in several countries. In order to ensure that people can still afford eggs, some governments have legislated a maximum price for eggs. Use demand and supply diagram to illustrate and explain the impact and problems of this policy on the market for eggs.2 Marks


2. What actions can the government take to reduce the problems associated with such a policy?1 Mark

QUESTION 7

What are two public goods that you have used in your life? Explain why they are public goods.2 Marks