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Business Economics-NMIMS Apr 18

Business Economics-NMIMS Apr 18

International Business

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Q1. Suppose the demand equation for computers by Teetan Ltd for the year 2017 is given by Qd= 1200-P and the supply equation is given by Qs= 120+3P. Find equilibrium price and analyse what would be the excess demand or supply if price changes to Rs 400 and Rs 120 (10 Marks)

 

Q2. Assume that at the price of Rs. 75, the demand for the product is 250 units. If the price of the product increases to Rs. 90, the demand decreases to 150 units. Calculate and analyse the difference in the value of price elasticity using Arc Elasticity Method and Percentage Method. (10 Marks)

 

Q3. Alpha Ltd was planning to start production next year. Different departments of the company were working together to forecast the demand of the product in the market.

a) If you are manager of the company mention the steps and the factors that would be relevant for forecasting the demand of rice in the market. (5 Marks)

b) The price of rice and its demand (in kg) produced by Alpha Ltd in 2018 is given in the table. Fit a linear regression line and estimate and analyse the demand for rice when price is Rs 50 per kg. ( 5 Marks)

Price(Rs/kg)

17

20

24

28

32

Demand(Kg)

80

75

65

60

54

 

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