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Business Economics - NMIMS June18

Business Economics - NMIMS June18

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Q1. Demand forecasting is not a speculative exercise into the unknown. It is essentially a reasonable judgement of future probabilities of the market events based on scientific background. Explain the statement by elaborating different qualitative and quantitative methods of demand forecasting. Which of the methods described by you is most suitable for forecasting the demand for "expensive mobile" and why? (10 Marks).
Q2. Which market is characterized by the "competition among few"? how is this market different from the "competition among many"? Explain how the producers in this kind of market promote their own interests by giving real world examples like OPEC, Cement Cartels, etc. (10 Marks)
Q3. A) Explain how the consumer attains utility maximisation and producer ensures cost minimization with the help of indifference curve and isoquant technique. (5 Marks)
Q3. B) "There is a high cross elasticity of demand between new and old cars". Discuss the statement by explaining the features of cross elasticity of demand. Also compare and contrast cross elasticity with other types of elasticities of demand. (5 Marks)
 

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