Dear students, get fully solved assignments by professionals
Do send your query at :
or call us at : 08263069601
(Plagiarism proofed assignments available with 100% surety and refund)
Micro Economics & Macro
Economics
Apr 2025 Examination
PLEASE NOTE: This assignment is application based, you
have to apply what you have learnt in this subject into real life scenario. You
will find most of the information through internet search and the remaining
from your common sense. None of the answers appear directly in the textbook
chapters but are based on the content in the chapter
Q1. Analyze how a company can utilize consumer demand
analysis to explore potential markets for new eco-friendly products. Discuss
factors such as identifying consumer preferences, segmenting the market,
evaluating external trends, and adapting strategies. Discuss how these factors
influence the company's interpretation of consumer behavior and strategy
formulation. Support your analysis with
examples. (10 Marks)
Ans
1.
Introduction
In
the modern business landscape, sustainability has become a significant factor
influencing consumer choices, pushing companies to develop eco-friendly
products. To ensure the successful introduction of such products, businesses
must conduct a thorough consumer demand analysis. This involves understanding
consumer preferences, segmenting the market, assessing external trends, and
adapting strategies accordingly.
Consumer
demand analysis helps firms identify potential markets by examining purchasing
patterns, lifestyle choices, and the willingness of customers to pay a premium
for sustainable good
Dear students, get fully solved assignments by professionals
Do send your query at :
or call us at : 08263069601
(Plagiarism proofed assignments available with 100% surety and refund)
Q2. During the COVID-19 pandemic,
the demand for personal protective equipment (PPE) masks surged dramatically
due to heightened health concerns. However, contrary to the typical behavior
predicted by the law of demand, the price of PPE masks also increased despite
the high demand. In some cases, the price even rose exponentially as suppliers
struggled to meet the increasing demand. On the other hand, in certain regions,
there were instances where masks were in abundant supply, yet prices remained
relatively high due to hoarding and panic buying. Analyze the exceptions to the
law of demand and supply observed in this scenario concerning PPE masks. How do
these exceptions challenge traditional economic theories, and what factors
contribute to this deviation from the standard demand-supply relationship? (10
Marks)
Exceptions
to the Law of Demand and Supply: The Case of PPE Masks During COVID-19
Ans
2.
Introduction
The
COVID-19 pandemic caused an unprecedented surge in the demand for personal
protective equipment (PPE) masks as global health concerns escalated.
Typically, according to the law of demand, an increase in demand should lead to
higher consumption and lower prices due to economies of scale. However, during
the pandemic, the price of PPE masks rose significantly despite their high
demand, defying traditional economic theories.
Several
exceptions to the law of
Q3 (A) XYZ Automobiles, a mid-sized
car manufacturer, recently expanded its production facilities to increase its
monthly output from 10,000 to 50,000 units. With this expansion, the company
observed a reduction in the per-unit production cost. The company invested in
advanced machinery, hired specialized managers for different departments, and
secured better financing terms from banks. Evaluate how XYZ Automobiles
benefited from economies of scale in reducing its average cost of production.
In your answer, explain how technical, managerial, and financial economies of
scale contributed to the reduction in costs and the company’s overall
efficiency. (5 Marks)
Ans 3a.
Introduction
XYZ
Automobiles, a mid-sized car manufacturer, recently expanded its production
capacity from 10,000 to 50,000 units per month. As a result, the company
observed a significant reduction in its per-unit production cost. This
phenomenon is explained by economies of scale, which allow firms to achieve
cost efficiency as production volume increases. By investing in advanced
machinery, hiring specialized managers, and securing better financing terms,
XYZ Automobiles leveraged technical, managerial, and financial economies of
scale to enhance overall
Q3 (B) Imagine that the Reserve
Bank of India (RBI) has set an inflation target of 4% for the upcoming fiscal
year. However, during this period, India faced external shocks, such as rising
global oil prices and supply chain disruptions caused by a natural disaster.
Domestic inflation rises to 6% due to increased food prices and wages. In
response, the RBI tightens monetary policy by raising interest rates to control
inflation. Businesses, particularly small and medium enterprises (SMEs), are struggling
to cope with the higher borrowing costs, while consumers are feeling the strain
of rising prices on essential goods. At the same time, the government is
pushing for infrastructure development to fuel economic growth. Analyze the
impact of inflation targeting on economic stability and growth in India,
considering the challenges faced by businesses and consumers in the given
scenario. How can inflation targeting contribute to economic stability, and
what are the trade-offs involved? What challenges might the RBI encounter in
trying to achieve the inflation target, and how could it balance between
controlling inflation and promoting growth?
(5 Marks)
Ans 3b.
Introduction
The
Reserve Bank of India (RBI) has set an inflation target of 4% for the fiscal year.
However, external shocks such as rising global oil prices and supply chain
disruptions led to inflation rising to 6%. In response, the RBI tightened
monetary policy by raising interest rates to control inflation. This affected
businesses, particularly SMEs, and reduced consumer spending power. At the same
time, the government prioritized infrastructure development to
Dear students, get fully solved assignments by professionals
Do send your query at :
or call us at : 08263069601
(Plagiarism proofed assignments available with 100% surety and refund)
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.