ECO402 Microeconomics Assignment 01 Fall 2020 Solution / Discussion

[HAFIZA AREESHA ASLAM]

ECO402 Microeconomics Assignment 01 Fall 2020 Solution / Discussion

[HAFIZA AREESHA ASLAM]

ASSALAM O ALIKUM! SIR PLEASE SEND THE SOLUTION OF FIRST ASSIGNMENT

[Muhammad Arslan Sheikh]

Hi, Dear

Please you mind sharing the solution. In case you are done already.
Your kind help will be much appreciated. 

[+ M.Tariq Malik]

ECO402 Assignment 1 Fall 2020 Solution:

 

 

 

 

 

 

[+ M.Tariq Malik]

ECO402 Assignment 1 Fall 2020 Solution:

Download attachment for ECO402 assignment 1 solution file in MS Word.

ECO402_Assignment_No_01_Solution_Fall_2020

[+ M.Tariq Malik]

Please Discuss here about this assignment.Thanks

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[+ M.Tariq Malik]

MICROECONOMICS (ECO402)

ASSIGNMENT # 01

DUE DATE: 10^TH DECEMBER, 2020 MARKS: 15

The Case:

Breakfast is often called ‘the most important meal of the day’. As the name suggests, breakfast breaks the overnight fasting period. It replenishes your supply of glucose to boost your energy levels and alertness. It also helps to provide other essential nutrients required for good health. Breakfast can help to better weight management, reduce risk of type 2 diabetes, and heart disease in the long term. Milk, eggs, and tea are commonly used in breakfast in Pakistan. Therefore, changes in the prices of these products have a major impact on the cost of living. The information about their nominal prices and CPI from 2018 to 2020 is giver below:

 

Item	Unit	Year	Nominal Price	CPI
Milk	Liter	Jun -2018	85.00	283.97
		Jun -2019	90.00	296.50
		Jun -2020	97.50	322.10
Eggs	Dozen	Jun -2018	83.13	182.83
		Jun -2019	79.38	172.61
		Jun -2020	115.63	229.01
Tea	Packet	Jun -2018	205.26	304.69
		Jun -2019	221.05	322.11
		Jun -2020	242.10	350.92

 

 

Requirements:

Keeping in mind the above scenario, solve the following questions.

1. By assuming June-2018 as the base year, find the real price of milk, eggs, and tea in each
2. If the base year bundle has 10 liter milk, 3 dozen eggs, and 2 packets of tea then find the Laspeyres index by assuming June-2018 as the base year and June-2020 as the current

Marks: (9+6)

[HAFIZA AREESHA ASLAM]

by using this formula we find out the real price 

(CPI BASE YEAR /CPI CURRENT YEAR) MULTIPLY NOMINAL PRICE CURRENT YEAR

by using this formula we find out the Laspeyres

(CURRENT YEAR PRICE MUTIPLY QUANTITY)/(BASE YEAR PRICE MULTIPLY QUANTITY)MUTIPLY BY 100

[Muhammad Arslan Sheikh]

Thank you so much for your kind help. 

I'm a new student at VU, and an overseas Pakistani, that is why have no idea what is going on here. I hope we will be helping each other in the future. I have sent you a request please add me there. I want to send you the assignment I've made if you can check and help me out with that.

Regards,

[Muhammad Bilal]

Question 1

Milk June 2019 Rs 86.2

     June 2020 Rs. 85.96

Eggs June 2019 Rs. 84.1

       June 2020 Rs. 92.31

Tea  June 2019 Rs. 209.1  

       June 2020 Rs. 210.2

[+ M.Tariq Malik]

ECO402 Assignment 1 Fall 2020 Solution:

 

 

 

 

 

 

[+ M.Tariq Malik]

ECO402 Assignment 1 Solution Fall 2020

Solution  :                                           

Formula  : (CPI base year/CPI current year)* nominal price current year

Items	unit	years	Nominal price	CPI	Real price
Milk	Liter	June -2018 June-2019 June-2020	85.00 90.00 97.50	283.97 296.50 322.10	283.97/283.97*85.00=85.00 283.97/296.50*90.00=86.20 283.97/322.10*97.50=85.96
Eggs	Dozen	June - 2018 June-2019 June-2020	83.13 79.38 115.63	182.83 172.61 229.01	182.83/182.83*83.13=83.13 182.83/172.61*79.38=84.08 182.83/229.01*115.63=92.31
Tea	Packet	June-2018 June-2019 June-2020	205.26 221.05 242.10	304.69 322.11 350.92	304.69/304.69*205.26=205.26 304.69/322.11*221.05=209.10 304.69/350.92*242.10=210.21

 

Q .NO:  2

Solution  :

Formula : (current year price *quantity)/(Base year price * quantity)*100

Items	unit	years	Nominal price	Real price	Laspeyres
Milk	10 liter	Jun - 2018 June-2019 June-2020	85.00 90.00 97.50	85.00 86.20 85.96	(85.96*10)/(85*10)*100 (859.60/850)*100 1.01*100 101
Eggs	03 dozen	Jun - 2018 June-2019 June-2020	83.13 79.38 115.83	83.13 84.08 92.08	(92.31*3)/(83.13*3)100 (276.93/249.39)*100 1.11*100 111
Tea	02 packet	Jun - 2018 June-2019 June-2020	205.26 221.05 242.10	205.26 209.10 210.21	(210.21*2)/(205.26*2)*100 (420.42/410.52)*100 1.02*100 102

 

 

 

[+ M.Tariq Malik]

ECO402 Assignment 1 Fall 2020 Solution:

Download attachment for ECO402 assignment 1 solution file in MS Word.

ECO402_Assignment_No_01_Solution_Fall_2020