Eco402 Assignment No. 1

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Assignment 01 ECO402

(Fall 2010)
Total Marks 20
Question 01:
Suppose for market of wheat the supply and demand equations in year
2010 are:
Q
d= 850 – 25P 
Q
s=500 + 45P 
A. Calculate the equilibrium price and equilibrium quantity of wheat for
2010.
B. Calculate the elasticity of demand and elasticity of supply; what do
you conclude from these answers whether these are elastic or
inelastic.

(Marks = 5+5)

Important Note:


Just calculate to the point in each part.NOneed to write irrelevant 
material or extra interpretation.
Question 02:
The following table shows the quantity of mangoes consumed and total
utility derived from consuming these mangoes.
Quantity of
mangoes
Consumed
Total Utility
0 0
1 10
2 18
3 24
4 28
5 30
6 30
7 28
8 24
A. From the information given in above table, calculate the marginal
utility at each point.
B. Draw Marginal Utility curve.

(7+3)

Important Note:


Draw graph of marginal utility by yourself. DoNOTcopy from any source. 
NO
need to write irrelevant material. 

Graphs are very important in Economics course. This assignment will 
enhance your skill of drawing graphs. A complete procedure of
“How to 
draw graphs in MS-Word”
is uploaded on announcement page of LMS. 
Get help from that uploaded file to solve this assignment.
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