www.vustudents.ning.com

We non-commercial site working hard since 2009 to facilitate learning Read More. We can't keep up without your support. Donate.

(ECO302) PRINCIPLES OF MICROECONOMICS ASSIGNMENT#1 Solution & Discussion DUE DATE: MAY 10, 2017

(ECO302) PRINCIPLES OF MICROECONOMICS ASSIGNMENT#1 Solution & Discussion  DUE DATE: MAY 10, 2017

The Case:
Cotton is the second important crop of our country after wheat, in terms of area and value
added. Cotton is known as the silver fiber of Pakistan. In Pakistan, cotton crop is
cultivated in the southern Punjab and Sindh. It brings cash returns to the farmers, supplies
raw materials to the textile industry and provides employment in both the rural and the
urban areas. According to the estimates, Pakistan cotton production for 2016/17 is
forecast to rebound to 7.7 million 480-pound bales, an increase of 10 percent from last
year. Suppose the quantity demanded of cotton at different prices is as follows:

 Price per bushel(Rupees) Quantity demanded of cotton(Bushels) 2,000 6,000 3,000 5,000 4,000 4200 5,000 3500

Requirements:
A. From the data given above, draw demand curve of cotton.
B. Calculate price elasticity of demand for cotton when price is between Rs. 3,000
and Rs. 4,000 by using arc elasticity method and interpret your result whether
demand is elastic or inelastic.
C. Based on the value of elasticity calculated above, what would be the impact of
bumper crop on farmers’ incomes?

Views: 448

Replies to This Discussion

Our main purpose here discussion not just Solution

We are here with you hands in hands to facilitate your learning and do not appreciate the idea of copying or replicating solutions. Read More>>

Note:-

For Important Helping Material related to this subject (Solved MCQs, Short Notes, Solved past Papers, E-Books, FAQ,Short Questions Answers & more). You must view all the featured Discussion in this subject group.

For how you can view all the Featured discussions click on the Back to Subject Name Discussions link below the title of this Discussion & then under featured Discussion corner click on the view all link.

&

.... How to Find Your Subject Study Group & Join ....

Eco note chahiye

1

2

3

4

5

Latest Activity

Barbiedoll and Adeel are now friends
1 hour ago
1 hour ago
1 hour ago
1 hour ago
★彡[ꜱᴜɢᴀʀ ɢᴇɴɪᴜꜱ]彡★ liked ayesha's discussion Cs301
1 hour ago
1 hour ago
1 hour ago
★彡[ꜱᴜɢᴀʀ ɢᴇɴɪᴜꜱ]彡★ liked Meera ch's discussion biotechnology
1 hour ago