Latest Activity In Study Groups

Join Your Study Groups

VU Past Papers, MCQs and More

ECO402 Microeconomics Assignment 01 Fall 2020 Solution / Discussion

Views: 795

Attachments:

Replies to This Discussion

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

Hi, Dear

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

ECO402 Assignment 1 Fall 2020 Solution:

 

 
 
 
 
 

ECO402 Assignment 1 Fall 2020 Solution:

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

ECO402_Assignment_No_01_Solution_Fall_2020

Please Discuss here about this assignment.Thanks

Our main purpose here discussion not just Solution

Students having same subject can start discussion here to solve assignment, GDB & Quiz and can clear their concepts until solution is provided. 

 

P.S:    Please always try to add the discussion in proper format title like “CS101 Assignment / GDB No 01 Solution & Discussion Due Date: ___________”

Then copy Questions from assignment file and paste in Discussion.

MICROECONOMICS (ECO402)

ASSIGNMENT # 01

DUE DATE: 10TH 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)

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

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,

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

ECO402 Assignment 1 Fall 2020 Solution:

 

 
 
 
 
 

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

 

 

 

ECO402 Assignment 1 Fall 2020 Solution:

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

ECO402_Assignment_No_01_Solution_Fall_2020

RSS

Looking For Something? Search Below

Latest Activity

© 2021   Created by + M.Tariq Malik.   Powered by

Promote Us  |  Report an Issue  |  Privacy Policy  |  Terms of Service