Podcast
Questions and Answers
Which goods are more likely to be inelastically demanded?
Which goods are more likely to be inelastically demanded?
How does the demand for wood in Taghaza compare to towns without big salt mines?
How does the demand for wood in Taghaza compare to towns without big salt mines?
If the elasticity of demand for college textbooks is -0.1, and the price increases by 20%, how will the quantity demanded change?
If the elasticity of demand for college textbooks is -0.1, and the price increases by 20%, how will the quantity demanded change?
What would be the necessary permanent price rise in oil to cut consumption by 50% if the elasticity of oil demand is -0.5?
What would be the necessary permanent price rise in oil to cut consumption by 50% if the elasticity of oil demand is -0.5?
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In Legon, what type of demand for apartments would result in the lowest rent possible?
In Legon, what type of demand for apartments would result in the lowest rent possible?
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What type of goods generally has a more elastic demand?
What type of goods generally has a more elastic demand?
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Which scenario illustrates a good with inelastic demand?
Which scenario illustrates a good with inelastic demand?
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If the price of a product rises and the quantity demanded remains unchanged, the demand is classified as?
If the price of a product rises and the quantity demanded remains unchanged, the demand is classified as?
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Who is EDEM competing with in the bidding for the graphic novel?
Who is EDEM competing with in the bidding for the graphic novel?
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What is the expected change in the equilibrium price and quantity of bananas after floods wiped out the crop?
What is the expected change in the equilibrium price and quantity of bananas after floods wiped out the crop?
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What is the anticipated effect on the demand for speed once airbags are included in cars?
What is the anticipated effect on the demand for speed once airbags are included in cars?
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Considering the relationship between total revenue and price, how elastic is the demand for cars produced by Eli Car Company?
Considering the relationship between total revenue and price, how elastic is the demand for cars produced by Eli Car Company?
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What is true about the demand for luxury goods like expensive cars and jewelry?
What is true about the demand for luxury goods like expensive cars and jewelry?
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How do unregulated markets often resolve a labor shortage in the absence of immigrants?
How do unregulated markets often resolve a labor shortage in the absence of immigrants?
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What impact does mass production have on the price elasticity of demand for cars?
What impact does mass production have on the price elasticity of demand for cars?
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What typically happens to consumer behavior when the supply of a product significantly decreases?
What typically happens to consumer behavior when the supply of a product significantly decreases?
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How much would the price of oil have to permanently rise in order to cut oil consumption by 50%?
How much would the price of oil have to permanently rise in order to cut oil consumption by 50%?
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What is likely to happen to the demand for corn oil when the price of olive oil goes up?
What is likely to happen to the demand for corn oil when the price of olive oil goes up?
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What is the income elasticity of demand for a good if a 2 percent increase in income increases the quantity demanded by 1 percent?
What is the income elasticity of demand for a good if a 2 percent increase in income increases the quantity demanded by 1 percent?
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When is a pharmaceutical business more likely to hire highly educated, cutting-edge workers?
When is a pharmaceutical business more likely to hire highly educated, cutting-edge workers?
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If oil executives learn about substantial new oil supplies available in 10 years, what is likely to happen to the supply of oil today?
If oil executives learn about substantial new oil supplies available in 10 years, what is likely to happen to the supply of oil today?
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In which town is it likely to be easier to find parking if Accra has free parking and Ada charges $5 per hour?
In which town is it likely to be easier to find parking if Accra has free parking and Ada charges $5 per hour?
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What will likely happen to the number of people covered by health insurance if the government mandates a 30% price cut?
What will likely happen to the number of people covered by health insurance if the government mandates a 30% price cut?
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What impact will a government-imposed price of half the free-market price have on the quantity supplied of bread?
What impact will a government-imposed price of half the free-market price have on the quantity supplied of bread?
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In a rent-controlled apartment, which action is a landlord likely to take more often?
In a rent-controlled apartment, which action is a landlord likely to take more often?
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What does a price ratio of 3 indicate about the trading of goods?
What does a price ratio of 3 indicate about the trading of goods?
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If the demand for peaches is perfectly elastic, a 7 percent price increase results in what change in quantity sold?
If the demand for peaches is perfectly elastic, a 7 percent price increase results in what change in quantity sold?
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Using the midpoint formula, what is the percent change in quantity demanded if the price of a DVD rises from $15 to $17 and quantity demanded decreases from 1,000 to 900?
Using the midpoint formula, what is the percent change in quantity demanded if the price of a DVD rises from $15 to $17 and quantity demanded decreases from 1,000 to 900?
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Which of the following is NOT a consequence of rent controls?
Which of the following is NOT a consequence of rent controls?
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When real estate developers build new student-friendly apartments, what demand type is most favorable for low rents?
When real estate developers build new student-friendly apartments, what demand type is most favorable for low rents?
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Perfect substitutes have which characteristic in relation to indifference curves?
Perfect substitutes have which characteristic in relation to indifference curves?
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Study Notes
Microeconomics 2022/23 IA Past Questions
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Question 1: EDEM is bidding for a first edition of Frank Miller's graphic novel Batman: The Dark Knight Returns. EDEM is competing with other bidders.
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Question 2: Floods in Central America led to a decrease in the banana supply thus increasing the equilibrium price and decreasing the equilibrium quantity of bananas.
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Question 3: The inclusion of airbags in cars will likely decrease the demand for speed on highways.
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Question 4: Eli, the car manufacturer, mass-produced cars at the start of the 20th century and kept total revenue and its relationship with price, to be considered inelastic in mind.
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Question 5: Demand for luxury goods, like jewelry, expensive cars, and real estate, is generally considered elastic.
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Question 6: Unregulated markets address labor shortages by increasing the price of labor until the supply of workers meets the demand.
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Question 7: Goods with inelastic demand are generally necessities, making them less responsive to price changes. Tangerines are considered a good example of inelastic good.
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Question 8: In Taghaza, the demand for wood, is more inelastic than elsewhere, because of the abundance of salt as a substitute for building material.
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Question 9: If the elasticity of demand for college textbooks is -0.1, a 20% increase in the price leads to a 2% decrease in the quantity demanded.
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Question 10: Policy makers in Ghana estimate the elasticity of demand for oil. A 50% cut in oil consumption would result from a 100% increase in oil prices.
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Question 11: Different goods have different elasticities of demand. In Ghana, the long-run elasticity of oil demand is estimated at -0.5, meaning that a 1% increase in price leads to a 0.5% decrease in quantity demanded.
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Question 12: Demand for tangerines is likely to be more inelastic than demand for fruit in general, as tangerines are a specific type of fruit and are not as easily substituted.
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Question 13: The demand for wood in Taghaza is more inelastic compared to other towns, due to the abundance of salt as a substitute for building materials.
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Question 14: In and around Legon, demand for student-friendly apartments is likely to be elastic. This is because consumers will easily switch to alternative housing options if the price goes up.
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Question 15: The elasticity of demand for oil in Ghana, estimated at -0.5, shows how a price increase can lead to a less than proportionate decrease in the quantity demanded in the long run.
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Question 16: A 50% decrease in oil consumption would require a 100% increase in price.
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Question 17: A 30% across-the-board price reduction in health insurance is likely to increase the number of people covered by health insurance because of the lower cost.
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Question 18: An increase in the price of olive oil may lead to a rise in demand for corn oil as consumers switch due to price sensitivity.
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Question 19: A 2% increase in income leads to a 1% increase in demand for a good indicates the good is normal with an income elasticity of 0.5.
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Question 20: Pharmaceutical businesses are likely to hire highly educated workers and use experimental research methods when the price for the new drug is expected to be high due to consumer demand.
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Question 21: Accra with free parking will likely have more cars parked, making it harder to find a parking space, hence making Ada with $5 per hour parking easier to find a parking space.
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Question 22: If the government forces bread manufacturers to sell at half the current market price, the quantity supplied will decrease.
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Question 23: Perfect substitutes have horizontal indifference curves.
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Question 24: In rent-controlled apartments, landlords are likely to discriminate against applicants to limit renters per room and provide fewer amenities.
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Question 25: Rent control leads to a shortage of rental housing, incentivizes migration, and can lead to overcrowding.
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Question 26: A price ratio of 3 means that consumers can trade 1 unit of good y for 3 units of good x.
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Question 27: A 7 percent increase in the price of peaches at a roadside stand results in no change in the quantity demanded.
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Question 28: A 2% decrease in the quantity demanded and 12.5% increase in price correlates to an income elasticity of -1.
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Question 29: Demand for student-friendly apartments in Legon is likely elastic as consumers are price-sensitive.
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Question 30: If the price of textbooks increases by 20%, the quantity demanded decreases by 2%.
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Question 31: With a price control on bread, quality would fall likely due to reduced profit margins.
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Description
Test your knowledge with these past questions from the Microeconomics IA for the 2022/23 academic year. The quiz covers critical concepts such as supply and demand dynamics, pricing strategies, and the effects of market changes. Delve into real-world scenarios and theoretical applications to enhance your understanding of microeconomic principles.
