IB08
Economics for International Managers
(For CNM Cases)
Assignment - I
Assignment Code: 2016IB08A1 Last Date of Submission: 30th April 2016
Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section-A
1. Over the past decade, the demand for CDs has dramatically increased. What are some of the causes of this increase in demand? According to supply-and-demand theory, price should rise when demand increases. However, in recent years the average price of a CD has actually fallen. Explain this apparent contradiction between the theory and fact.
2. Explain the difference between short run and long run production function. Cite one example of this difference in business situation.
3. Explain key difference between perfect competition and monopolistic competition.
4. “The best forecasting method is the one that give the highest proportion of correct predictions” Comment. Enumerate the methods of qualitative and quantitative forecasting. What are the major differences between the two?
Section-B
Case Study
According to a study, the price elasticity of shoes in the United States is 0.7, and the income elasticity is
0.9.
(a) Would you suggest that the Brown Shoe Company cut its prices to increase its revenue?
(b) What would be expected to happen to the total quantity of shoed sold in the Unites States if income rises by 10 percent?
(10+10)
Economics for International Managers
(For CNM Cases)
Assignment - I
Assignment Code: 2016IB08A1 Last Date of Submission: 30th April 2016
Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section-A
1. Over the past decade, the demand for CDs has dramatically increased. What are some of the causes of this increase in demand? According to supply-and-demand theory, price should rise when demand increases. However, in recent years the average price of a CD has actually fallen. Explain this apparent contradiction between the theory and fact.
2. Explain the difference between short run and long run production function. Cite one example of this difference in business situation.
3. Explain key difference between perfect competition and monopolistic competition.
4. “The best forecasting method is the one that give the highest proportion of correct predictions” Comment. Enumerate the methods of qualitative and quantitative forecasting. What are the major differences between the two?
Section-B
Case Study
According to a study, the price elasticity of shoes in the United States is 0.7, and the income elasticity is
0.9.
(a) Would you suggest that the Brown Shoe Company cut its prices to increase its revenue?
(b) What would be expected to happen to the total quantity of shoed sold in the Unites States if income rises by 10 percent?
(10+10)
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