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Business Economics
1. What do you mean by demand Forecasting? Enumerate the limitations of demand forecasting (10 Marks)
2. Complete the hypothetical table below and explain in brief, the behaviour of each type of cost.
Quantity Total Fixed Cost Total Variable
Cost Total
Cost Average
Fixed Cost Average Variable
Cost Average
Total
Costa Marginal
Cost
0 100 0
1 100 25
2 100 40
3 100 50
4 100 60
5 100 80
6 100 110
(5 Marks)
3.a. Assume that a business firm supplied 450 units at price Rs 4500.The firm has decided to increase the price of the product to Rs 5500. Consequently, the supply of the product is increased to 600 Units. Calculate the elasticity of supply. (5 Marks)
3.b. From the given demand Schedule, calculate the price elasticity of demand.
Price of Air Tickets (Per Tickets ) Quantity Demanded (tickets per month)
1,00,000 5,000
1,20.000 3,500
For Nmims answersheets contact
[email protected]
+91 95030-94040
doc_230977291.docx
For Nmims answersheets contact
[email protected]
+91 95030-94040
Business Economics
1. What do you mean by demand Forecasting? Enumerate the limitations of demand forecasting (10 Marks)
2. Complete the hypothetical table below and explain in brief, the behaviour of each type of cost.
Quantity Total Fixed Cost Total Variable
Cost Total
Cost Average
Fixed Cost Average Variable
Cost Average
Total
Costa Marginal
Cost
0 100 0
1 100 25
2 100 40
3 100 50
4 100 60
5 100 80
6 100 110
(5 Marks)
3.a. Assume that a business firm supplied 450 units at price Rs 4500.The firm has decided to increase the price of the product to Rs 5500. Consequently, the supply of the product is increased to 600 Units. Calculate the elasticity of supply. (5 Marks)
3.b. From the given demand Schedule, calculate the price elasticity of demand.
Price of Air Tickets (Per Tickets ) Quantity Demanded (tickets per month)
1,00,000 5,000
1,20.000 3,500
For Nmims answersheets contact
[email protected]
+91 95030-94040
doc_230977291.docx