ECO401 Assignment No 1, Fall 2014,Solutions and Discussions Due Date: Nov-27, 2014
Important announcement, Assignment # 01 ECONOMICS (ECO401)
This is to inform that Assignment No. 1 will be opened on November 20, 2014 and due date of assignment submission will be November 27, 2014.
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ye values put krni hain aur phr in ka derivative lena hai... delta means derivative..
yeahhh 2nd part is also simple.. just need some clarifications
variation in elasticity of demand is point ka kia krna ha?
Price Elasticity Of Demand for business travelers = PЄ d
PЄ d = Percentage change in Quantity Demanded /Percentage change in Price
Price Elasticity Of Demand = PЄ d = 2, 900 – 2, 800 / 150-200
Price Elasticity Of Demand = PЄ d = 100 / 50
Price Elasticity Of Demand = PЄ d = 2
Price Elasticity Of Demand for Tourists:
Price Elasticity Of Demand = PЄ d = 1, 800-1, 000 / 150-200
Price Elasticity Of Demand = PЄ d = 800 / 50
Price Elasticity Of Demand = PЄ d = 16
check it ye theek ha?
you didn't take the change in percentage.
formula to calculate the percentage change of demand is;
[QDemand(NEW) - QDemand(OLD)] / QDemand(OLD)
formula to calculate the percentage change of price is;
[Price(NEW) - Price(OLD)] / Price(OLD)
variation batnai ha in dno ma. ak elastic ha or dosri inelastic ha isi ko explain krna ha kasy ye elestic or inelastic hain
variation ka mtlb he k unhe ye bta den k elastic / inelastic he? koi page reference he is k bary me to plz share.
Urwa mnz hamain yey bbhi batana hoga ky in dono ky darmeyan cross price elasticity hy
Airline industry is a large and growing industry. It accelerates economic growth, world
trade, international investment and tourism and is therefore, central to the globalization.
The airline industry is always dependent on prevailing market conditions. There are lots
of factors which affect the passenger’s demand for air line’s travel; increase in its prices
of tickets, oil price, and terrorist throughout the year. Furthermore, market competition
and other modes of traveling (substitutes) in market like train, car etc. also affect demand
of airline tickets. If the demand and supply equations for airline tickets are:
a) Find the market clearing quantity and price of airline tickets, also show the
equilibrium condition graphically.
b) Find out the price elasticity of demand and price elasticity of supply of airline
tickets at equilibrium price and quantity.
c) What will be the effect on the equilibrium level of airline tickets if ticket prices
increases due to high fuel prices. Illustrate graphically
People travel through air lines for different purposes, like businessmen travel for
business purpose and tourists for entertainment. Elasticity of demand is different
for both types of travelers. Suppose that business travelers and tourists have the
following demand for airline tickets from Lahore to Karachi.
a) Find the elasticity of demand when price of airline’s tickets rises from $150
to $200 for business travelers and tourists.
b) Discuss the variation in elasticity of demand results in part “a” for both types
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