Eco402 Assignment No. 1
Monday, October 25, 2010 Posted In Eco Edit This(Fall 2010)
Total Marks 20
Question 01:
Suppose for market of wheat the supply and demand equations in year
2010 are:
Q
d= 850 – 25P
Q
s=500 + 45P
A. Calculate the equilibrium price and equilibrium quantity of wheat for
2010.
B. Calculate the elasticity of demand and elasticity of supply; what do
you conclude from these answers whether these are elastic or
inelastic.
(Marks = 5+5)
Important Note:
•
Just calculate to the point in each part.NOneed to write irrelevant
material or extra interpretation.
Question 02:
The following table shows the quantity of mangoes consumed and total
utility derived from consuming these mangoes.
Quantity of
mangoes
Consumed
Total Utility
0 0
1 10
2 18
3 24
4 28
5 30
6 30
7 28
8 24
A. From the information given in above table, calculate the marginal
utility at each point.
B. Draw Marginal Utility curve.
(7+3)
Important Note:
•
Draw graph of marginal utility by yourself. DoNOTcopy from any source.
NO
need to write irrelevant material.
•
Graphs are very important in Economics course. This assignment will
enhance your skill of drawing graphs. A complete procedure of
“How to
draw graphs in MS-Word”
is uploaded on announcement page of LMS.
Get help from that uploaded file to solve this assignment.