NMIMS BBA – B.Com Micro Economics Solved Answer Assignment

Micro Economics

NMIMS BBA – B.Com Micro Economics Solved Answer Assignment

1. “The technique of indifference curves has been used not only to explain consumer’s behavior and demand but also to analyze and explain several other economic problems “In view to the above statement elaborate about indifference curve and its properties. (10 Marks)

Introduction:

In business economics, the production of any product depends upon its market demand. And the customer is the individual whose energy and usage contentment factor is to evaluate to have a good evaluation of market demand. There are different ways whereby a manufacturer can rule the needs and demands of the customer; one such way is the Indifference Curve.

Concept & Application:

Indifference curve and its properties: 

An indifference contour is one such contour where a line is attracted between various consumption packages on a graph sheet which shows the consumption of excellent A and excellent B. It is stated that in every usage package, the person is indifferent.

It is a method to identify the customer’s taste and preferences between 2 products because it is impossible for the consumer to state just how much energy they stem from eating any one asset because the point is not a quantifiable size.

Conclusion:

It is the consumer choices that can be figured out with different usage bundles, i.e., whenever a consumer has a selection between 2 products for usage, he will consume some components of Good A and some of Great B., the usage bundle in between 2 products is defined by the Indifference curve graphically.

NMIMS BBA – B.Com Micro Economics Solved Answer Assignment

2. 2. Find below the hypothetical data for total production costs of a manufacturing firm at various levels of output. Complete the following. (10 Marks)

Introduction:

In business economics, cost analysis is a fundamental idea that aids organizations in determining their profitability and rates approaches. There are various sorts of prices that organizations need to take into consideration, consisting of repaired costs, variable costs, and overall costs. This article will review three essential cost ideas – average price, average fixed price, and typical variable price.

Concept & Application:

In business economics, the principle of a typical cost is crucial in identifying the performance of a company’s production process. A firm needs to think about three types of ordinary costs: ordinary total expense, typically fixed price, and average variable price. The average price is the overall cost of producing a certain number of items divided by the number of items made.

Conclusion:

The typical price, taken care of cost, and variable price aid services compute their prices for each outcome produced.

NMIMS BBA – B.Com Micro Economics Solved Answer Assignment

3a. Calculate the price elasticity of demand by percentage method for the following data:

When the price is Rs 20 per unit, demand for a commodity is 500 units. As the price falls to Rs15 per unit, demand expands to 800 Units. (5 Marks)

Introduction:

Rate elasticity of demand, as it is widely called, is a financial dimension of exactly how the quantity demanded of a good is affected by changes in its price. Rate Elasticity is essential in identifying the market’s demand and supply condition.

Concept & Application:

Price flexibility of demand is a crucial principle of market regulation. It is a necessary marketing practice for predicting how consumers respond to various stimuli. Rate elasticity of demand, as it is widely called, is an economic dimension of just how the amount demanded of a good is impacted by modifications in its price. It is thus a means to determine the customers’ responsiveness to the variations in rate, in contrast to cost elasticity of supply which identifies the store’s responsiveness to the speed of the product.

Conclusion:

Price Flexibility is vital in determining the marketplace’s demand and supply status. The manufacturer must compute it to recognize the preference, preferences and customers’ actions in the direction of any product and its price. In the immediate instance, the product has highly elastic demand as it surpasses

NMIMS BBA – B.Com Micro Economics Solved Answer Assignment

1.3b. From the given demand and supply curve for Adidas Shoes, Calculate the equilibrium price and quantity. (5 marks)

Qd=400-3P

Qs=200+2P

Introduction:

The equilibrium cost and amount in a market is the factor at which the amount demanded by consumers equates to the quantity supplied by producers. To find the equilibrium rate and amount, we need to establish the quantity demanded equal to the amount given and resolve the rate. This is additionally known as the market-clearing rate and quantity.

Concept & Application:

In business economics, the balance cost and amount describe the marketplace price and quantity at which the amount of a product that customers agree to get equals the quantity that producers are willing to sell. There is no excess demand or supply in the market, and the market is stated to be unstable.

The demand contour represents the quantity of a product that customers are willing to buy at various expenses. In contrast, the supply contour represents the amount manufacturers are eager to cost multiple costs. The crossway of the supply and demand curves establishes the equilibrium cost and amount.

Conclusion:

Consequently, Adidas footwear’s balance price and quantity are $120 per pair and 160 sets, specifically. At this price, the amount demanded by consumers equals the abundance provided by producers, causing a market balance.

NMIMS BBA – B.Com Micro Economics Solved Answer Assignment