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MBA-MSC
MANAGERIAL ECONOMICS
ASSIGNMENT ANSWERS
QATAR 2020
Answer the below questions. Each question
carries 10 marks.
1). Discuss the supply schedule and the various factors
affecting the supply in the
2). Explain the Price elasticity with appropriate
formulae. Also, explain how it will differ for elastic & inelastic
3). Demand of a product is usually very sensitive
to economic variables, such as the prices and consumer income. This
responsiveness of demand is elasticity. Compute elasticity in the below
scenarios:
a). Three days ago, the price of envelopes was $7 a
box, and Julie was willing to buy 80 boxes. Today, the price has gone up to
$7.75 a box, and Julie is now willing to buy 18 boxes. Is Julie’s demand for
envelopes elastic or inelastic? What is Julie’s elasticity of demand?
b). If Neil’s elasticity of demand for hot dogs is
constantly 0.9, and he buys 4 hot dogs when the price is $1.50 per hot dog, how
many will he buy when the price is $1.00 per hot dog?
4). Explain the different types of Costs in a
tabular format & with a well-labelled diagram
5). Describe the various factors affecting demand
and also draw the demand curve if it is perfectly inelastic and the demand for
cardiac bypass surgery, given that the government pays the full cost for any
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Section
“B”
Answer the below questions. Each question
carries 20 marks.
6). Show in a diagram the effect on the demand
curve, the supply curve, the equilibrium price, and the equilibrium quantity of
each of the following
a). The market for newspapers in your town
Case 1:
The salaries of journalists go up.
Case 2:
There is a big news event in your town, which is reported in the newspapers.
b). The market for St. Louis Rams (a professional
football team) cotton T-shirts
Case 1:
The Rams win the Super Bowl
Case 2:
The price of cotton increases.
c). The market for the Krugman and Wells economics
textbook
Case 1:
Your professor makes it required reading for all of his or her students.
Case 2:
Printing costs for textbooks are lowered by the use of synthetic paper.
7). Asian-based telecom operator recently announced
that it was launching Virgin Mobile as a new telecom brand within the country.
It would operate in conjunction with Etisalat and Du. Assuming the trend
continues, and the government opens the market for private and foreign players.
You are required to –
a). Apply your understanding and concepts from
microeconomics, to investigate and summarize the major characteristics of the
emerging market form in the telecom industry.
b). Describe and analyze the pricing policies that
you would expect to find in this industry.
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