Business Economics in rs 199 narsee monjee

Answer: An indifference curve may be defined as the locus of points, each representing a different combination of two goods but yielding the same level of utility or satisfaction. Since each
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School for Continuing Education (NGA-SCE)
Course: Business Economics
Internal Assignment Applicable for April 2019 Examination

1. What are the important characteristics of an indifference curve. Suppose a consumer s disposable income is Rs. 5,000/- per week and she has a choice of spending the income on concerts and meals. Assume meal is available for Rs.250/- each and concerts are available for Rs.500/- each. Prepare a table of possible combinations of meals and concerts that could be bought with the income. What is your observation about the values in the table?

Answer: An indifference curve may be defined as the locus of points, each representing a different combination of two goods but yielding the same level of utility or satisfaction. Since each

2. Find below the data for price elasticity and income elasticity of demand for 5 different commodities. Interpret the values in the table in the light of
Whether the demand is elastic or inelastic for each of the commodities and why
What do you mean by negative income elastic demand in case of commodity 3
Give example for each type of commodity.
Commodity Price Elasticity of demand Income elasticity of demand
1 -0.3 +0.6
2 -1.45 +5.60
3 -5.09 -1.67
4 -0.7 +0.8
5 1.0 1.0

Answer: i)
Commodity Price Elasticity of demand Reason
1 -0.3 If Ped < 1 demand is inelastic for the goods i.e unresponsive to change in price.

3 a) Different prices can be charged by the producer in the different market segments to maximize revenue. Explain the statement by taking a case of aviation industry.
3 b) What do you mean by price rigidity? Which type of market structure is characterized by the price rigidity? Explain your views taking an example of industry facing the problem of price rigidity.

Answer: Price Discrimination under Monopoly
The theory of pricing under monopoly, gives the impression that once a monopoly firm fixes up the price of its product, the same price is charged from all the consumers. This however may not be the case. A monopolist, simply by virtue of its monopoly power, is capable of charging

Complete Assignment available for NMIMS
in Rs 199 per assignment only
You can call us 87-55555-879
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