Essay on Home Work

1022 Words Aug 12th, 2010 5 Pages
LOVELY PROFESSIONAL UNIVERSITY Form/LPUO/AP-3 (The format to be used for Planning the academic activities other than Lecturers/Tutorial/Practical like Assignments, Case study, Presentation, Quiz, Projects, Class tests, industrial visits, teaching practice, court visits etc. to be undertaken as a part of the continuous assessment for the Course)
Home-Work1

School : LSB Department of Management
Name of the faculty member : Neha Shandilya
Course No. ECO515 Course Title: Managerial Economics
Class: MBA Semester I Section: R1001 Batch 2010-12
Max. Marks: 15 Date of
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If wheat is available for Rs.12 /kg, what price will he be willing to pay for rice in order to maximize his utility?

2 The fundamental economic problems of what to produce, how to produce and for whom to produce are solved differently by different economic systems. Discuss how a capitalist Economy solves these problems.
3 Tomatoes and potatoes are available for Rs. 7/kg and Rs. 10 /kg respectively. If you have an income of Rs. 35000, draw the budget line as graph.

4 Suppose you are the manager of California winey. How would you expect the following events to affect the price you receive for a bottle of wine?
a. The price of French wines decreases
b. One hundred new wineries open in California
c. The unemployment rate in USA decreases
d. The price of cheese increases
e. The price of a glass bottle increases significantly due to government anti-shatter regulations
5 Other things being the same what would happen to the supply of a particular product if
a. price of the product decreases
b. a technological breakthrough enables the good to be produced at a significantly lower cost
c. the price of inputs used to produce the product increases
d. the price of substitute commodity decreases
e. the managers of the firms that produce that good expect the rise in price of that product in near future

6 A) What is income consumption curve? Draw

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