Department of Management Sciences, Karachi Campus

BS A&F – Spring 2023

Microeconomics – ECO110
Assignment No.3

Name of Student: ______________________ Class: BS Section: C

Elasticity of Demand

This assignment will facilitate students to understand the concept of elasticity of demand
and its various types. The assignment will also facilitate them to understand how the concept
of elasticity of demand is used in business decision making.

Q. No. 1 Complete the schedule and identify the nature of the commodity

Percentage change Percentage change Income

Income Quantity in Quantity in Income Elasticity
Nature of
(M) (Q) %∆Q %∆M Em Good

8000 5 - - - -
12000 10

16000 15

20000 18

24000 20

28000 19

32000 18
 Q. No. 2 Complete the schedule and identify the nature of the commodity

Cross Income
Price Elasticity Elasticity of Nature of Elasticity of Nature of
Commodities Degree of Commodities Commodities
of Demand Demand Good Demand Good
Elasticity of
Ed Demand Exy EM

Beef 0.92 Beef, Mutton 0.28 Butter 0.42

Potatoes 0.31 Pen, Ink -0.28 Margarine -0.20

Sugar 0.31 Butter, Margarine 0.67 Meat 0.35

Mobile Phone, SIM
Electricity 1.20 Card -0.28 Electricity 0.20
Restaurant Restaurant
Meals 2.27 Electricity, Natural Gas 0.20 Meal 1.48