Shaheed Zulfikar Ali Bhutto Institute of Science & Technology

MICROECONOMICS
TASK NO. 01

Submitted To: DR. SYED AZIZ RASOOL

Submitted By: AMNA KHAN
Registration Number:2017103

Total Marks: __________

Obtained Marks:__________

Department of Social Sciences BSSS-1A

 Shaheed Zulfikar Ali Bhutto Institute of Science & Technology

1-What is competitive market briefly describe a type of

market that is not perfectly competitive?

The term “competitive market” is an economic term that is used to

describe a certain type of market that has a large number of buyers
and sellers, however these people have little to no impact in
determining market price. It is also called a perfectly competitive
market. On the other hand, a market that is not perfectly competitive
usually have one single seller who controls the price. This seller is
called a monopoly.

2-CURVE, AND HOW ARE THEY RELATED? WHY

DOES THE DEMAND CURVE SLOPE DOWNWARD?

Opportunity cost of seeing a movie includes the monetary cost

of admission plus the time cost of going to the theater and
attending the show. The time cost depends on what else you
might do with that time; if it's staying home and watching TV,
the time cost may be small, but if it's working an extra three
hours at your job, the time cost is the money you could have
earned.

3 -A MOVEMENT ALONG THE DEMAND CURVE OR

TO A SHIFT IN THE DEMAND CURVE? DOES A
CHANGE IN PRICE LEAD TO A MOVEMENT
ALONG THE DEMAND CURVE OR TO SHIFT IN THE
DEMAND CURVE? EXPLAIN YOUR ANSWERS.

A change in consumers’ tastes leads to a shift of the demand curve. If

the change in consumers’ takes leads to an increase in demand,
consumers want to buy more of this good at every price level. A
change in price causes a movement along the demand curve. It can

Department of Social Sciences BSSS-1A

 Shaheed Zulfikar Ali Bhutto Institute of Science & Technology
either be contraction (less demand) or expansion/extension.
(more demand) A change in price does not shift the demand curve –
we merely move from one point of the demand curve to another.
This is a movement along the curve

This is the shift along the curve

Department of Social Sciences BSSS-1A

 Shaheed Zulfikar Ali Bhutto Institute of Science & Technology

4-HARRY’S INCOME DECLINES, AND AS A RESULT,

HE BUYS MORE PUMPKIN JUICE. IS PUMPKIN
JUICE AN INFERIOR OR A NORMAL GOOD? WHAT
HAPPENS TO HARRY’S DEMAND CURVE FOR
PUMPKIN JUICE?

An inferior good is in economic term that describes a good whose

demand drops when people income rise. Since harry buys more
pumpkin juice when his income declines this proves pumpkin juice as
an inferior goods shifts out when income decreases shifts in when
income increases.

5-WHAT ARE THE SUPPLY SHEDULE AND THE

SUPPLY CURVE, AND HOW THEY ARE RELATED?
WHY DOES THE SUPPLY CURVE SLOPE UPWARD?

A supply in the table shows the quantity supplied at different prices in

the market. A supply curve shows the quantity supplied at different
prices in the market. A supply curve shows the relationship between
quantity supplied and price on the graph.

Department of Social Sciences BSSS-1A

 Shaheed Zulfikar Ali Bhutto Institute of Science & Technology

A supply curve slopes upward to the right (a positive slope),

indicating that the greater the price buyers are willing to pay for a
product the greater quantity firms will supply

Department of Social Sciences BSSS-1A