Assignments has to be done positively during your Autumn Break.This Assignment carries   weightage which will be added to your Internal Assesment.  

Assignment-  1DEMAND 1.    How is the firm’s demand curve affected by the degree of competition existing in its Industry?2.   What is Bandwagon Effect and Snob Effect? How do they effect the Demand for goods?Draw Graph3.    Explain Giffen Paradox and Veblen Effect? Does usual Law of Demand apply in their case ?Draw Graph4.    Explain the effect on Market price and Qty in the market for mobile phones handsets of each of the following: Draw Grapha)      Consumer Income risesb)      Technical Improvements reduce production costsc)      The price of fixed line calls falls sharply5.      List all the markets in which you regularly buy goods or services. How are  the prices and Qty. determined during the transaction? Do these prices changes on a day to day basis.6.      An Individual Demand Curve  slopes downward to the right because of:a)      Income Effect of fall in pricesb)      Substitution Effect of Decrease  in pricesc)      Diminishing Marginal Utilityd)      None of the abovee)      All of the above7.      Indicate what happens in the market for Hamburgers if:a)      Prices of hot dogs increasesb)      A direct subsidy on each head of cattle is given to farmers raising cattlec)      Medical research proves that this new breed results in hamburgers with less cholesterold)      A new breed of cattle is developed with much faster growth.8.      How do increase in consumer’s income and prices of the substitute goods affect the demand for a commodity?9.      Why do demand curves for most goods slope downwards to the right?10.  Distinguish between a Demand Function and a Demand Curve?11.  What are the factors that causes a shift in the demand curve?12.  Differentiate between Movement in Demand curve and shift in demand curve?13.  Derive a Demand Curve from the Demand Function      Q=50-10P14.  Find out Equilibrium Qty. from the demand function    Qd=25-10P    and Supply Function   Qs=25P. What is the change in price of Demand function changes to  Qd=30-10P ,  Supply function remaining the same?15.  The sales data of a book publishing company produces a demand function as Q=5000-50P.  From this demand function, find out:a) Demand Schedule and Demand curve

b) No of Books sold at price Rs 25.c) Price for selling 2500 copies                                                         d) Price for zero salese) Sales at Zero price 16.  From a Demand Function Qd =2000-30P and a Supply function Qs=20P find out     a) Equilibrium Price      b) Equilibrium Qty.    c) Gap between Demand and Supply at P=Rs20  and  P=Rs 50.      ASSIGNMENT -2Elasticity of Demand                                                                                                            Q1.Suppose the price of a commodity falls from rs 6 to rs 4 per unit and due to this qty demanded increases from 80 units to 120 units. Find out ED.(Ans=1)                                                                                                                     Q2.A consumer purchased 80 units when price was rs 1 and purchased 48 units when price rises to rs 2 per unit.what is ED.(Ans=.75) Q3.Suppose a seller wants to lower the price of its cloth from rs 150 per metre to rs 142.5 per metre .If its present sales are 2000 metre per month ,it is estimated that its ed is equal to 0.7.Showa)Whether or not his total revenue will increase as a result of his decision to lower the price.b)Calculate the exact magnitude of his new total revenue.(Ans= ND=2070,Change in Demand=70,TR before reduction in price=300000,TR after price red=294975 Q4. Do you think that price elasticity of demand would be greater for car industry as a whole or for Maruti 800 of a Maruti firm? Q5. Why is demand likely to be more elastic in the long run as compared to short run? Q6. Explain why a firm should never operate in the inelastic range of its demand curve? Q7. Prove the following:a)      Demand curves having different slopes have the same elasticityb)      Demand curves having same  slopes have the different elasticity 

Q8. Suppose a demand schedule is given as follows:Price:                       100        80        60         40         20           0Quantity:                     100       200      300       400      500        600a)      Find the Elasticity for the fall in price from Rs 80 to Rs 60Q9. Suppose price of a commodity falls and its demand increases so much that elasticity is estimated to be 1.25.Suppose price increases back to its old level.What will be the effect on price Elasticity. Q10. What will the effect of price increase and Decrease on Revenue if a)      Elasticity is less than 1b)      Elasticity is more than 1c)      Elasticity is equal than 1 Q11. How policy makers use Price Elasticity of demand to discourage Underage Drinking.Q12. What is meant by a)Elastic Demand b) Inelastic Demand c) Unitary Elastic DemandQ13.Demand for a Firms Product  has been estimated to be                        Qd=1000-200PIf the price of the product is Rs 3 per Unit, find out the Elasticity of Demand at this price?Q14.The price Elasticity of Demand for colour TV is estimated to be -2.5. If the price of the colour TV is reduced by 20% how much will be the increase in the percentage of demand?Q15.Which of the following sets of commodities are like to have a positive cross elasticity of demand?a.      Aluminium & Plasticsb.      Wheat & cornc.       Pencil & Paperd.      Private & Public