We have been working very hard since 2009 to facilitate in your learning Read More. We can't keep up without your support. Donate Now.
+ Link For Assignments, GDBs & Online Quizzes Solution |
+ Link For Past Papers, Solved MCQs, Short Notes & More |
ECO402 Microeconomics Assignment No 01 Spring 2019 Solution & Discussion Due Date: 22-05-2019
The Case:
Dates (Khajur) are commonly used at the time of Iftar in the month of Ramadan. Dates
are the perfect diet to break the fast as it activates the body to take in the inflow of food,
by helping to secrete digestive juices. Dates are full of carbohydrates and fiber. The
demand of dates increases in the month of Ramadan, which in turn increases the price
of dates.
Suppose the initial demand and supply equations of dates are given as follows:
Qs = 240 + 0.30P
Qd =300 - 0.20P
In the month of Ramadan, let the demand equation of dates is:
Qd =320 - 0.10P
Requirement:
a) Find the market clearing level of quantity and price of dates before demand change.
b) Find the market clearing level of quantity and price of dates after demand change.
c) Find out the price elasticity of demand of dates at initial equilibrium price and quantity
and interpret the results.
Marks: (3+3+4)
Tags:
+ http://bit.ly/vucodes (Link for Assignments, GDBs & Online Quizzes Solution)
+ http://bit.ly/papersvu (Link for Past Papers, Solved MCQs, Short Notes & More)
+ Click Here to Search (Looking For something at vustudents.ning.com?) + Click Here To Join (Our facebook study Group)Please Discuss here about this assignment.Thanks
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>>
Discussed & be touched with this discussion. After discussion a perfect solution will come in a result at the end.
“How to Join Subject Study Groups & Get Helping Material”
P.S: Please always try to add the discussion in proper format title like “CS101 Assignment / GDB No 01 Solution & Discussion Due Date: ___________”
Share below link with friends for solution & Discussion.
Any one please share solution
Dates (Khajur) are commonly used at the time of Iftar in the month of Ramadan. Dates
are the perfect diet to break the fast as it activates the body to take in the inflow of food,
by helping to secrete digestive juices. Dates are full of carbohydrates and fiber. The
demand of dates increases in the month of Ramadan, which in turn increases the price
of dates.
Suppose the initial demand and supply equations of dates are given as follows:
Qs = 240 + 0.30P
Qd =300 - 0.20P
In the month of Ramadan, let the demand equation of dates is:
Qd =320 - 0.10P
Requirement:
a) Find the market clearing level of quantity and price of dates before demand change.
b) Find the market clearing level of quantity and price of dates after demand change.
c) Find out the price elasticity of demand of dates at initial equilibrium price and quantity
and interpret the results.
ECO402 Microeconomics Assignment No 01 Spring 2019 Solution
One more idea solution
ECO402_Microecnomics_Assignment#1 Solution
(a) Market clearing level of quantity and price of dates before demand change:(a) Market clearing level of quantity and price of dates before demand change:Market clearing level equation: Qs=Qd 240+0.30P=300-0.20P0.30P+0.20P=300-2400.5P=60P=60÷0.5P=120Q=240+(0.30P)(120) =276 (b) Market clearing level of quantity and price of dates after demand change:Qs=Qd 240+0.30P=320-0.10P0.03P+0.10P=320-2400.4P=80P=80÷0.4=200Q=240+(0.30p)(200) =300 (C) Price Elasticity of demand of dates at initial Equilibrium price and quantity: Price Elasticity of demand of Dates is = = (-0.20) = -.087 ( inelastic)
Interpretation of the above result:Price Elasticity of Demand measures the sensitivity of quantity demanded to price changes. It measures the percentage change in the quantity demanded for a good or services that result from a one percent change in the price of that good or services.1) Because of the inverse relationship between P and Q; EP is negative.2) If IEPI < 1, the percent change in quantity is less than the percentChange in price. We can say that demand is price inelastic.
+ M.Tariq Malik
thanx tooo much
ECO402 Assignment Solution Spring 2019
© 2020 Created by +M.Tariq Malik. Powered by
Promote Us | Report an Issue | Privacy Policy | Terms of Service
We are user-generated contents site. All product, videos, pictures & others contents on vustudents.ning.com don't seem to be beneath our Copyrights & belong to their respected owners & freely available on public domains. We believe in Our Policy & do according to them. If Any content is offensive in your Copyrights then please email at m.tariqmalik@gmail.com or Contact us at contact Page with copyright detail & We will happy to remove it immediately.
Management: Admins ::: Moderators
Awards Badges List | Moderators Group
All Members | Featured Members | Top Reputation Members | Angels Members | Intellectual Members | Criteria for Selection
Become a Team Member | Safety Guidelines for New | Site FAQ & Rules | Safety Matters | Online Safety | Rules For Blog Post