Peter plays tennis every weekend If he decides to study for an exam instead of p

Question

Peter plays tennis every weekend If he decides to study for an exam instead of playing tennis, the pleasure he receives from playing tennis is greater than the value of studying for the exam the opportunity cost of studying for the exam cannot be compared to the value of studying for the exam equal to the value of studying for the exam Fig. 1: The market for car parking spaces Figure 1 shows the market for car parking spaces in the central business district (C3D) of a city. From Figure 1. which of the following is correct If the CBD car parks charge $20 per day, there will be an average 2000 parking spaces left vacant each day If the car parks charge $12 per day, 3000 drivers will be unable to find a car parking space each day. Car parks will require a minimum charge of $12 a day to offer the 5000,h car parking space daily. If only 1000 car parking spaces were available, users of car parks would be willing to pay a minimum of $20 in car parking fees per day From Figure 1, which of the following statements is correct A car parking fee of $12 a day cannot be maintained unless more car parks are built. A car parking fee of Si6 can be maintained because at this rate there will be few if any dissatisfied drivers and car parks would be wiling to supply the 3000 car parking spaces demanded. A fee of $20 is not sustainable because at this price many city workers will use public transport and builders will convert existing buildings to car parks. All of the above statements are correct. Suppose all public golf courses increase the fee charged to play golf What effect will this have on the market for golf balls? a leftward shift in supply a rightward shift in supply a leftward shift in demand a rightward shift in demand If a 10 per cent drop in the ticket price for Pura Cup cricket matches leads to a 12 per cent increase in attendance, the demand for Pura Cup tickets is elastic inelastic unit elastic perfectly elastic

Explanation / Answer

(i) Opportunity cost is something that you have to give up when youchoose the best alternative. Thus, if Peter chooses to study exam,the pleasure he receives is the opportnity cost of studyingfor the exam (ii)At $12, supply is 2000 while demand is 5000. Thus, (B) is thecorrect answer. Hope this helps!

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