Business Economics
Assignment Marks: 30
_______________________________________________________________________
Instructions:
- All Questions carry equal marks.
- All Questions are compulsory.
- All answers are to be explained in not more than 1000 words for questions 1 and 2, and question 3 is not more than 500 words for each subsection. Use relevant examples and illustrations as far as possible.
- All answers are to be written individually. Discussion and group work is not advisable.
- Students are free to refer to any books/reference material/website/internet for attempting their assignments but are not allowed to copy the matter as it is from the source of reference.
- Students should write the assignment in their own words. Copying of assignments from other students is not allowed.
- Students should follow the following parameters to answer the assignment questions.
| For Theoretical Answer | |
| Assessment Parameter | Weightage |
| Introduction | 20% |
| Concepts and Application
related to the question |
60% |
| Conclusion | 20% |
| For Numerical Answer | |
| Assessment Parameter | Weight age |
| Understanding and usage
of the formula |
20% |
| Procedure / Steps | 50% |
| Correct Answer &
Interpretation |
30% |
The manager of a company was analyzing the trend of its products (Commodity Y) being replaced by another substitute product available in the market, which gives the same level of satisfaction to the consumers. Calculate the Marginal Rate of Substitution and analyze the result.
|
Combination |
Units of Commodity Y |
Units of Commodity X |
Total Utility |
| a | 40 | 10 | U |
| b | 25 | 14 | U |
| c | 17 | 19 | U |
| d | 10 | 27 | U |
| e | 7 | 38 | U |
(10 Marks)
Neha has just completed her MBA and joined a startup company. The company was planning to launch a new product in the market, so the management wanted to understand the different factors that can impact the demand and supply of their products.
Help Neha to prepare a report on the factors affecting demand and supply of products in the market. (10 Marks)
Alpha Ltd market share was declining due to high competition in the market, so it decided to enter a new segment. It wanted to determine the relationship between changes in the quantity demanded of the product due to the change in the price of the product in the market.
Assume that at the cost of 100, the demand for the product is 400 units. If the product price increases to 120, the demand decreases to 250 units. Calculate the price elasticity:
- Using Arc elasticity method (5 Marks)
- Using Percentage method (5 Marks)