ASSESSMENT (Module 3)

Activity 1

Name: ALBERCA, MAY MARIE E. Course and Yr.: BSBA-FM2

Date: October 03, 2023 Rate: __________________

On the line before each number, write T if the statement is correct and F if incorrect.
_T_1. The consumption line is upward sloping from the point of origin.
_T_2. An elasticity of .5 means a normal luxury good.
_T_3. The coefficient of income elasticity is a measure of how responsible demand is to an income
change.
_T_4. A decrease in price may benefit the seller if demand is elastic.
_T_5. An increase in price may benefit the seller if demand is highly elastic.
_T_6. If demand is unitary elastic, neither an increase nor decrease in price will affect the seller’s total
revenue.
_T_7. Complementary goods are used together.
_F_8. Inferior goods are purchased more at higher income levels.
_F_9. A positive cross elasticity implies that goods are complementary.
_T_10. The more substitutes there are for a good, the more elastic the demand for it becomes.
I. APPLY

Activity 2

Name: ALBERCA, MAY MARIE E. Course and Yr.: BSBA-FM2

Date: OCTOBER 03, 2023 Rate: __________________

Historical sales figure of compass x for 2001 – 2009

Year X sales Y XY X² % growth rate

2001 -4 23.2

2002 -3 24.1

2003 -2 40.3

2004 -1 30.2

2005 0 35.8
2006 1 15.6

2007 2 24.9

2008 3 25.8

2009 4 52.70

Total: 272.60

Compute the following:

a. % on growth rate

b. Projected value of 2010 and 2011

c. What is the average growth rate?

a. % on growth rate

Year X Sales Y XY X² % growth rate

2001 -4 23.2 -92.80 16
2002 -3 24.1 -72.30 9 3.73%
2003 -2 40.3 -80.60 4 40.20%
2004 -1 30.2 -30.20 1 -33.44%
2005 0 35.8 0.00 0 15.64%
2006 1 15.6 15.60 1 -129.49%
2007 2 24.9 49.80 4 37.35%
2008 3 25.8 77.40 9 3.49%
2009 4 52.7 210.80 16 51.04%
----------- ------------
272.60 -11.47%
b. Projected value of 2010 and 2011

Year X Sales Y XY X² % growth rate

2001 -4 23.2 -92.80 16
2002 -3 24.1 -72.30 9 3.73%
2003 -2 40.3 -80.60 4 40.20%
2004 -1 30.2 -30.20 1 -33.44%
2005 0 35.8 0.00 0 15.64%
2006 1 15.6 15.60 1 -129.49%
2007 2 24.9 49.80 4 37.35%
2008 3 25.8 77.40 9 3.49%
2009 4 52.7 210.80 16 51.04%
2010 5 36.76 183.82 25 -43.35%
2011 6 38.06 228.35 36 3.40%
----------- ------------
347.42 -51.42%
-5%

Projected value of 2010 and 2011

c. What is the average growth rate?

The average growth rate is -11.47% or -1% (from 2001 to 2009).

The average growth rate is -51.42% or -5% (from 2001 to 2011).