The manager of a company was analysing the trend of the products of its company(Commodity Y) getting replaced by another substitute product available in the market which gives the same level of satisfaction to the consumers
For Theoretical AnswerAssessment Parameter WeightageIntroduction 20%Concepts and Applicationrelated to the question60%Conclusion 20%For Numerical AnswerAssessment Parameter WeightageUnderstanding and usageof the formula20%Procedure / Steps 50%Correct Answer &Interpretation30%NMIMS Global AccessSchool for Continuing Education (NGA-SCE)Course: Business EconomicsInternal Assignment Applicable for December 2018 Examination
1. The manager of a company was analysing the trend of the products of its company(Commodity Y) getting replaced by another substitute product available in the marketwhich gives the same level of satisfaction to the consumers. Calculate the rate ofMarginal Rate of Substitution and analyse the result.
Combination Units ofCommodity YUnits ofCommodity XTotal Utilitya 40 10 Ub 25 14 Uc 17 19 Ud 10 27 Ue 7 38 U(10 Marks)
2. Neha has just completed her MBA and joined a startup company. The company wasplanning to launch a new product in the market so the management wanted tounderstand the different factors that can impact the demand and supply of theirproducts in the market. Help Neha to prepare a report on the factors impacting demandand supply of products in the market. (10 Marks)
3. Alpha Ltd market share was declining due to high competition in the market so itdecided to enter a new segment. It wanted to determine the relationship betweenchange in the quantity demanded of the product due to change in the price of theproduct in the market. Assume that at the price of ?100, the demand for the product is400 units. If the price of the product increases to ?120, the demand decreases to 250units. Calculate the price elasticity:
a) Using Arc elasticity method (5 Marks)
b) Using Percentage method (5 Marks)