The Concept of Elasticity for Demand is Importance for Determining

University:  NMIMS

                                                                                     NMIMS Global Access
                                                                                     School for Continuing Education (NGA-SCE)
                                                                                     Course: Business Economics
                                                                                     Internal Assignment Applicable for April 2020 Examination

1. The concept of elasticity for demand is importance for determining the prices of various
factors of production. Discuss the various factors that influences the price elasticity of
demand. (10 Marks)

2. Complete the hypothetical table below and explain in brief, the behaviour of each type of cost.
Quantity     Total Fixed Cost     Total Variable 
Cost     Total 
Cost     Average 
Fixed Cost     Average Variable 
Cost     Average 
Costa     Marginal 
0     0        
1     25        
2     40        
3     50        
4     60        
5     100     80        
6     110        
7     150        
8     300        
9     500        
10     900      

3. Demand forecasting in an organisations plays a vital role in business organisations
It provides reasonable data for the organization's capital investment and expansion
a. Keeping the above statement in consideration. Discuss the various steps involved in
demand forecasting (5 Marks)
b. Discuss the various needs for demand forecasting in business organisations?
(5 Marks)

Business Economics