Managerial Economics

PGDM (Trimester I)
Practice Sheet #2
Reference: Unit II

Answer all the questions.

1. With the help of examples differentiate between

a.Direct demand and derived demand
b.Firm demand and industry demand
c.Local demand and global demand
d.Short run demand and long run demand
2. Does information on cross price elasticity of demand help a producer/marketer?
Give examples of some products for which this may be useful.
3. What will happen to the supply of candles if wax is taxed?
4. Find out the factors that have been responsible for rise in the price of dairy
products in India in the last few years.
5. A crop failure may improve the income of the farmers. Explain.
6. Comment on the income elasticity of the following:
a. Perfume
b. Air travel
c. Water

PGDM(2014-16)

Ms. Deepti Kakar