Blog: Mgt301 Assignment No. 2 solution

“Principles of Marketing (MGT301)”
Assignment No. 2 Marks: 20
“Price Elasticity of Demand”


Price Elasticity of Demand is an important concept which should be considered while changing the price of product. In this perspective two scenarios are given below:


Scenario 1: (5 Marks for explanation+ 5 marks for Graph)


Product A belongs to the category of normal goods and it has a lot of substitutes. If the price of product B increases then what will be the effect on its demand? Justify your answer with the help of graph.


Scenario 2: (5 Marks for explanation+ 5 marks for Graph).
Product B is a high quality product and people who purchase this product belong to elite class. It has very less substitutes available in the market which don’t have the same quality as product C has. If the price of product C increases then what will be the effect on the demand of product C? Justify your answer with the help of graph.


Instructions:
1. Your answer should be precise and in bulleted form.
2. Graph should be labeled
3. You can take help of MS Word and Excel in making graphs.




Opening Date and Time
May 27 , 2011 At 12:01 A.M. (Mid-Night)
Due Date and Time
June 02 , 2011At 11:59 P.M. (Mid-Night)


Note: Only in the case of Assignment, 24 Hrs extra / grace periodafter the above mentioned due date is usually available to overcome uploading difficulties which may be faced by the students on last date. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience.


Alert !
Error in Assignment file:

In assignment #2 there is a typographic error. In scenario #1 Product B should be considered in place of product A. In scenario #2 Product C should be considered in place of Product B.


Solution: