UNIVERSITY OF CENTRAL PUNJAB

SEMESTER SPRING- 2023

Course Title: Microeconomics for Business

Assignment No.1

Course Instructor: Dr.Shafiq ur Rehman

Section: C Program: BBA Date: 2-4-2023
Maximum Marks:
Due Date: 7-4-2023 Obtained Marks:
15
Sr.
Student Name: Registration No: No:

NOTE:

It is a individual handwritten assignment. To avoid copy-paste, questions regarding

assignment will be asked to the students.

Questions #1 (5 Marks)

The demand for good X is given by

Qd x = 6000-0.5Px- Py+9P+0.1M

The research shows that price of related goods are given by P y =6500 and Pz=100 while
consumer income is M=70,000

a) Indicate whether good Y and Z are substitute or complement for good X.

b) Is X an inferior or a normal good?

c) How many unit of good X is purchased when Px=5230

d) Determine the demand function and inverse demand function for good X?

Page 1 of 2 Quiz
Questions #2 (5 Marks)

The demand curve for product X is given by Qd x =300 – 2Px

a) Find inverse demand function, also calculate total revenue.

b) Find consumer surplus when Px=45 , Px= 30.
c) What happens to the level of consumer surplus as the price falls?

Questions #3 (5 Marks)

Suppose the demand and supply are given by

Q= 60- P and Q=P-20

a) Determine equilibrium price and quantity in the market?

b) If government set price floor Rs.50, is there surplus or shortage in the market and
how much
c) Determine quantity demand and quantity supplied and magnitude of the shortage
if a price ceiling is Rs.32 imposed?

Page 2 of 2 Quiz