Mba Semester 1
Master of Business Administration - MBA Semester I
MB0042 – Managerial Economics - 4 Credits
(Book ID: B0908)
Assignment Set- 1 ( 60 Marks)
Note: Each question carries 10 Marks. Answer all the questions.
Q.1 Price elasticity of demand depends on various factors. Explain each factor with the help of an example.
Q.2 A company is selling a particular brand of tea and wishes to introduce a new flavor. How will the company forecast demand for it ?
Q.3The supply of a product depends on the price. What are the other factors that will affect the supply of a product.
Q.4Show how producers equilibrium is achieved with isoquants and isocost curves.
Q.5 Discuss the full cost pricing and marginal cost pricing method. Explain how the two methods differ from each other.
Q.6 Discuss the price output determination using profit maximization under perfect competition in the short run.
Q.1 Price elasticity of demand depends on various factors. Explain each factor with the help of an example.
Answer:
Consumers in a market economy are influenced by various factors in deciding what to buy.
One of these factors is price, and the law of demand that defines the typical relationship between price and quantity demanded states that consumers will demand more of a particular product at a lower price, and less at a higher price. However, the price elasticity of demand extends this and examines the extent of such changes in demand in relation to price. How much demand contracts or expands in response to a price change is of importance to businesses and governments, and hence methods such as the total outlay method have been developed to test the price elasticity of demand at various price levels.
The price elasticity of demand measures the responsiveness or sensitivity of the quantity demanded of a particular product to changes in its price. As a figure, the price elasticity of demand shows the percentage change in the quantity of
MB0042 – Managerial Economics - 4 Credits
(Book ID: B0908)
Assignment Set- 1 ( 60 Marks)
Note: Each question carries 10 Marks. Answer all the questions.
Q.1 Price elasticity of demand depends on various factors. Explain each factor with the help of an example.
Q.2 A company is selling a particular brand of tea and wishes to introduce a new flavor. How will the company forecast demand for it ?
Q.3The supply of a product depends on the price. What are the other factors that will affect the supply of a product.
Q.4Show how producers equilibrium is achieved with isoquants and isocost curves.
Q.5 Discuss the full cost pricing and marginal cost pricing method. Explain how the two methods differ from each other.
Q.6 Discuss the price output determination using profit maximization under perfect competition in the short run.
Q.1 Price elasticity of demand depends on various factors. Explain each factor with the help of an example.
Answer:
Consumers in a market economy are influenced by various factors in deciding what to buy.
One of these factors is price, and the law of demand that defines the typical relationship between price and quantity demanded states that consumers will demand more of a particular product at a lower price, and less at a higher price. However, the price elasticity of demand extends this and examines the extent of such changes in demand in relation to price. How much demand contracts or expands in response to a price change is of importance to businesses and governments, and hence methods such as the total outlay method have been developed to test the price elasticity of demand at various price levels.
The price elasticity of demand measures the responsiveness or sensitivity of the quantity demanded of a particular product to changes in its price. As a figure, the price elasticity of demand shows the percentage change in the quantity of