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Principles of macroeconomics assignment

 

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MINISTRY OF MANPOWER

HIGHER COLLEGE OF TECHNOLOGY

BUSINESS STUDIES DEPARTMENT

(Semester: S1) 2018-19

ASSIGNMENT

 

PRINCIPLES OF MICROECONOMICS

[BAEC1203]

 

 

SUBMITTED BY

 

NAME: ______________________________________

STUDENT ID: ________________________________

LEVEL/SEMESTER: – Diploma 1year/S1

 

SUBMITTED TO

  1. SHUBHAKAR GOOTAM

LECTURER, OFFICE: BS048

 

 

 

 

AY-S1-2020-21

 

GUIDELINES

  1. Take print of the soft copy of this document
  2. Write your name and student ID in the space provided in the title page.
  3. All the seven Questions Are Compulsory.
  4. Marks for each question are mentioned.
  5. Diagrams should be drawn neatly and clear
  6. Diagrams should be drawn in the space provided
  7. Every diagram should be correctly labelled
  8. Use black or blue pen to draw diagrams
  9. Date of submission 13-12-2020.
  10. Distributions of marks:

Total marks 20

 

All Graphics- 15 marks

Neat and Perfect drawings-5marks

 

 

 

 

 

 

 

ASSIGNMENT QUESTIONS:

 

 

  1. Graphically illustrate categories of price elasticity of demand and give an example of each. (2.5marks)

 

  • Perfectly inelastic demand
  • Relatively inelastic demand
  • Relatively elastic Demand
  • Unitary elastic demand
  • Perfectly elastic demand

 

  1. Show graphically Relative Magnitudes of Changes in demand and supply. (2marks)

 

  1. When Change in supply is greater than demand what will be the new price and quantity.
  2. When Change in supply is less than demand what will be the new price and quantity
  3. When supply and demand both increase, but increase in supply is greater than demand, what will be the impact on price and quantity?
  4. When supply and demand both increase, but increase in supply is less than demand, what will be the impact on price and quantity?

 

  1. With the help of an appropriate diagram state the relationship between Average cost and Marginal cost. (2marks)

 

  1. Draw costs curves. (3.5marks)

 

  1. Total cost
  2. Total variable cost
  3. Total fixed cost
  4. Average Fixed Cost (AFC)
  5. Average Variable Cost (AVC)
  6. Average Total Cost (ATC/AC)
  7. Marginal Cost

 

  1. Graphically Show the relationship between AR and MR under imperfect competition (2.5marks)

 

  1. Graphically Show price and output determination under perfect competition (2.5marks)

 

 

  1. Graphically illustrate categories of price elasticity of demand and give an example of each. (2.5marks)

 

a)      Perfectly inelastic demand

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

b)      Relatively inelastic demand

 

c)      Relatively elastic Demand

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

d)     Unitary elastic demand

 

e)      Perfectly elastic demand

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  1. Show graphically Relative Magnitudes of Changes in demand and supply. (2marks)

 

a)   When Change in supply is greater than demand what will be the new price and quantity.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

b)      When Change in supply is less than demand what will be the new price and quantity

 

c)   When supply and demand both increase, but increase in supply is greater than demand, what will be the impact on price and quantity?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

d)  When supply and demand both increase, but increase in supply is less than demand, what will be the impact on price and quantity?

 

 

  1. With the help of an appropriate diagram state the relationship between Average cost and Marginal cost. (2marks)
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  1. Draw costs curves. (3.5marks)

 

a.       Total cost

 

 

 

 

 

 

 

 

 

 

 

 

 

b.      Total fixed cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

c.       Total variable cost

 

d.      Average Variable Cost (AVC)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

e.       Average Fixed Cost (AFC)

 

f.       Marginal Cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

g.      Average Total Cost (ATC/AC)

 

 

  1. Graphically Show the relationship between AR and MR under imperfect competition (2.5Marks)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  1. Graphically Show price and output determination under perfect competition (2.5 Marks)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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