SVKM’s NMIMS
NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: Business Economics
SEM - I
Program (New) : DBM / PGDBM / DHRM / PGDHRM / DMM / PGDMM / DFM / PGDFM / DBFM /
PGDBFM / DSCM / PGDSCM / DITM / PGDITM / DRM / PGDRM / DSM / DFPWM / PGDGM
Program (Old ) : DBM / PGDBM / DHRM / PGDHRM / DMM / PGDMM / DFM / PGDFM / DBFM /
PGDBFM / DSCM / PGDSCM / DITM / PGDITM / DRM / PGDRM / DSM / DFPWM
Assignment Marks : 30
Instructions:
All Questions carry equal marks.
All Questions are compulsory
All answers to be explained in not more than 1500 words. Use relevant examples, illustrations as
far as possible.
All answers to be written individually. Discussion and group work is not advisable.
Students are free to refer to any books/reference material/website/internet for attempting their
assignments, but are not allowed to copy the matter as it is from the source of reference.
Students should write the assignment in their own words. Copying of assignments from other
students is not allowed.
1. Calculate Elasticity in the following cases:
a) Assume that a business firm sells a product at the price of Rs 500. The firm has decided
to reduce the price of the product to Rs 400. Consequently, the demand for the product is
raised from 20,000 units to 25,000 units. Calculate the price elasticity of demand.
b) Suppose the monthly income of an individual increases from Rs 15,000 to Rs20,000.
Now, his demand for clothes increases from 35 units to 40 units. Calculate the income
elasticity of demand.
c) Assume that the quantity demanded for detergent cakes has increased from 400 units to
500 units with an increase in the price of detergent powder from Rs20 to Rs 25. Calculate
the cross elasticity of demand between two products.
2. Complete the table:
Output
units
Total cost Average
Total Cost
Fixed
cost
Average
Fixed Cost
Average
Variable
Cost
Marginal
Costs
0 100
25 150
50 200
75 250
100 300
125 350
150 400
175 450
200 500
********************
NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: Business Economics
SEM - I
Program (New) : DBM / PGDBM / DHRM / PGDHRM / DMM / PGDMM / DFM / PGDFM / DBFM /
PGDBFM / DSCM / PGDSCM / DITM / PGDITM / DRM / PGDRM / DSM / DFPWM / PGDGM
Program (Old ) : DBM / PGDBM / DHRM / PGDHRM / DMM / PGDMM / DFM / PGDFM / DBFM /
PGDBFM / DSCM / PGDSCM / DITM / PGDITM / DRM / PGDRM / DSM / DFPWM
Assignment Marks : 30
Instructions:
All Questions carry equal marks.
All Questions are compulsory
All answers to be explained in not more than 1500 words. Use relevant examples, illustrations as
far as possible.
All answers to be written individually. Discussion and group work is not advisable.
Students are free to refer to any books/reference material/website/internet for attempting their
assignments, but are not allowed to copy the matter as it is from the source of reference.
Students should write the assignment in their own words. Copying of assignments from other
students is not allowed.
1. Calculate Elasticity in the following cases:
a) Assume that a business firm sells a product at the price of Rs 500. The firm has decided
to reduce the price of the product to Rs 400. Consequently, the demand for the product is
raised from 20,000 units to 25,000 units. Calculate the price elasticity of demand.
b) Suppose the monthly income of an individual increases from Rs 15,000 to Rs20,000.
Now, his demand for clothes increases from 35 units to 40 units. Calculate the income
elasticity of demand.
c) Assume that the quantity demanded for detergent cakes has increased from 400 units to
500 units with an increase in the price of detergent powder from Rs20 to Rs 25. Calculate
the cross elasticity of demand between two products.
2. Complete the table:
Output
units
Total cost Average
Total Cost
Fixed
cost
Average
Fixed Cost
Average
Variable
Cost
Marginal
Costs
0 100
25 150
50 200
75 250
100 300
125 350
150 400
175 450
200 500
********************
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