MB 101: MANAGERIAL ECONOMICS (MICRO)-CA1

Total Marks:25
Answer the following questions:

1. How can we solve the basic problems of an economy in a capitalistic economy? 5

2. Is price elasticity of demand an important factor for producers to take decisions regarding pricing
of their products? Explain it with proper example(s). 5

3. ‘All Giffen goods are inferior goods but all inferior goods are not Giffen goods’-justify the
statement. 5

4. Importance of arc elasticity in decision making. 5

5. Explain four properties of indifference curve. 5