Question

8. Test 1 202001 If quantity demanded is GREATER than quantity supplied in a market, a develops and market price will eventually Shortage: Fall Shortage : Rise Surplus ; Rise D. Surplus: Fall or the following the factor that will cause an increase in Quantity Demanded is A Lower prices B. Higher income levels C. Increased prices of substitutes D. favourable change in tastes 10. Use Marginal Analysis to determine the OPTIMAL number of POST OFFICES from the table below. No of POST OFFICES TOTAL BENEFITS TOTAL COSTS 100 200 250 BO 390 300 520 400 570 180 310 520 800 500 600 B. 200 300 400 D500 Answer sheet: Please cross out the correct answer in the table below: Name: Student ID: >

Answer 1

8.if quantity demand is greater than quantity supply is known as excess demand inthe market so market supply will short fall and eventually price increase.

so option B is correct.

9. increase in quantity demand is only possible due to own price of commodity so lower price of goods increase it quantity demand

so option A is correct.

10

post offices	total benefit	Marginal benefit= change total benefit/ change in post offices.	total cost	marginal cost= change total cost/ change in post offices.
0	0	-	0	-
100	250	2.5	80	0.8
200	390	1.4	180	1
300	520	1.3	310	1.3
400	570	0.5	520	2.1
500	600	0.3	800	2.8

where marginal benefit= marginal cost then optimal level of post offices are there so 300 post office are required.

option B is correct