Tuesday, 27 December 2016

Business Economics



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Business Economics




1. Calculate the following: (10 Marks)


Quantity
Total Fixed
Cost
Total Variable
Cost
Total
Cost
Average
Cost
Marginal
Cost
10 10 15 ? ? ?
11 10 18 ? ? ?
12 10 21 ? ? ?
13 10 24 ? ? ?


2. Determine the market equilibrium price for the following demand and supply equation:
D = 9p + 6
S = 10p – 5
Determine the equilibrium quantity if price is the same as above
D = 3p – 3q
S = 8q – 3p  (10 Marks)


3. Calculate the following:


a) Assume that a business firm sells a product at the price of 500. The firm has decided to reduce the price of the product to 350. Consequently, the demand for the product is raised from 30,000 units to 35,000 units. In this case calculate the price elasticity of demand. (5 Marks)


b) Suppose the monthly income of an individual increases from 6,000 to 11,000. Now, his demand for clothes increases from 30 units to 60 units. Calculate the income elasticity of demand. (5 Marks)






Answer Sheet, Project Reports, Thesis Reports contact
ARAVIND – 09901366442 – 09902787224


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