ECO82001 Economical and Quantitative Analysis

ECO82001 Economical and Quantitative Analysis

ECO82001 Economical and Quantitative Analysis

In this ECO82001 economical and quantitative analysis assessment student will emphasis on features of macroeconomics & microeconomics of most significance for the managers. The key objective is the market structure and what it can boundaries, achieve, and let-downs of markets; government policies and further elements in the macroeconomic environment impacting on business; how problems and government policies regarding the global economic effect on business. The Quantitative analysis methods for economics and business are presented and applied.

The weighting of this assessment is 25% of the total.

Learning outcomes

This assessment Learning Outcomes precise learning accomplishment in terms of what a student should know and be able to do on the accomplishment of an assessment. These learning outcomes are categorized with the graduate attribute also the basis of appraising prior learning.

Instructions

You have to prepare short written answers to the five following questions within 250 words (max) for each question.

There are total 5 questions and each question contains 5 marks.

Question – 1

Answer the following questions:

a. What is the midpoint method for computing price elasticity of demand?
b. How else can the price elasticity demand be calculated?
c. What are the benefits/ advantage of the midpoint formula?

Question – 2

Answer the following questions:

1. What are the key factors of the price elasticity of demand for goods?
2. What are the most important factors which affect the price elasticity of the demand?

Question 3

In 2015, when music downloading first launched, the average price of universal music dropped off a CD form $21 to $15. The company estimated the price cut to increase the quantity of CDs sold by 30%, other things left over similar.

1. What was universal music’s expected price elasticity of demand for CDs?
2. If you were building the decision of price at universal music, what would be your pricing decision? Clarify your decision?

Question – 4

In May 2015, I Tunes increase the price of 33 songs from 99¢ per download to $1.29 per download. Following the price rise in this week, the quantity of downloads of these 33 songs fell 35%. Taking this and calculate the price elasticity of demand for these 33 songs.

Question -5  

A 5% decrease in the price of chocolate sauce raised the quality of chocolate sauce demanded by 10%, and no change in the price of ice-cream, the quality of ice- cream demanded raised by 15%.

1. Calculate the price elasticity of demand for chocolate sauce.
2.Are ice cream and chocolate sauce substitutes or complements? Why?