Numerical Problems

Administrative Economics Numerical Problems DEMAND AND ELASTICITY OF DEMAND Problem 1 coming up next are request and gracefully conditions of a pen producer. Qd = 5,00,000 †50, 000 P Qs = - 1,00,000 + 1,00,000 P Find 1. At what normal value, level of interest is equivalent to zero. 2. At what normal value, level of gracefully is equivalent to zero. 3. Compute the balance cost and amount. Issue 2 Yashika Limited produces a programmed camera that at present sells at uS$90. Deals volume is around 2,000 cameras for each month in a city. A nearby contender, Minolta, has cut the cost of a comparable camera it makes from US$ 100 to US$80. Yashika’s financial expert has evaluated the circular segment cross flexibility of interest between the two opponent firms’ items at around 0. 4, given current salaries and value levels. What sway, assuming any, will the activity by Minolta have on the complete income produced by Yahika, on the off chance that it leaves its present cost unaltered? YASHIKA |MINOLTA | |P1y = 90 |P1m = 100 | |Q1y = 2,000 |P2m = 80 | |Q2y = to be resolved |Cross flexibility of interest = 0. 4 | Problem 3 Bajaj Appliances Ltd. produces a line of microwaves costing US$500 each. Its deals have found the middle value of around 6,000 units for every month during 2001. In June 2002, Bajaj’s nearest contender LG had cut its oven’s cost from US$600 to US$450. Bajaj saw that its business volume declined to 4,500 units for every month after the value cut by its adversary LG. 1. What is the circular segment cross value flexibility of interest between the two? 2. OK state that these two firms are close contenders? 3. In the event that Bajaj realizes that the bend value versatility of interest for its broilers is â€3. 0, what value it would have charged to sell same number of units it did before its opponent LG turned to a value cut? Issue 4 Demand for cell phone handsets by a famous organization in Bangalore city is assessed to be Qd = 2,50,000-35P. On the off chance that this relationship is roughly legitimate for one year from now additionally, 1. What number of cell phones would be requested at a cost of Rs. 2,000, 4,000, and 6,000 a set? 2. Figure the circular segment value flexibility somewhere in the range of 2,000 and 4,000; 4,000 and 6,000. 3. Compute point flexibility at 2,000, 4,000 and 6,000. 4. On the off chance that last year 25,000 units were sold, what might have been the normal cost? 5. What is the most elevated hypothetical cost for the portable handset in Bangalore for this vender? Issue 5 The interest work for divider checks in a city has been assessed to be Q= 2000 +15Y-5. 5P Where Y is salary in thousand rupees, Q is amount in units, and P is unit cost. When P=150, y =15, discover 1. Value versatility of interest 2. Salary flexibility of interest Problem 6 Two products have a cross versatility of +1. 2 1. Would portray them as substitutes or praises? Give models for supporting the classification that you picked. 2. On the off chance that cost of one of the two ascents by 5%, ceteris paribus, what befalls the Qd of the other? Issue 7 The interest for snacks in a foundation flask was evaluated to be Q= 16,415. 21-262. 743P, where Q= snacks served, P= cost in rupees. 1. Register the value flexibility of interest at a cost of Rs. 40, Rs. 50 for each lunch 2. What is the curve value flexibility of interest between the costs 40 and 50? Issue 8 Pepsodent sells a toothbrush for Rs. 25. Its deals have found the middle value of 8,000 units for every month in the course of the most recent year. As of late, its nearby rival, Colgate, scaled down the cost of its item from Rs. 35 to Rs. 30 for every toothbrush. Therefore, Pepsodent’s deals declined by 1,500 units for each month. . What is their cross flexibility? What relationship it demonstrates? 2. On the off chance that Pepsodent realizes that it has a cross flexibility of â€1. 5 with Colgate, the amount it should now charge to reestablish past deals after the value cut by Colgate? (Accept Colgate holds its cost at Rs. 30 itself and doesn't fight back). 3. What i s the all out month to month income of Pepsodent when the value change in (2) above? 4. Is the outcome to a limited extent (3) above fundamentally alluring? What different components would need to be thought about?