Micro Economics & Macro Economics semester-1 June 2026 solved assignment
Description
Micro Economics & Macro Economics
June 2026 examination
Q1 A premium electric scooter company, EcoRide Motors, has been operating successfully in a metropolitan city. Over the last six months, the company has observed a significant increase in demand for its scooters, even though the price of the scooter has remained unchanged.
The following developments have taken place in the market:
The government has announced higher fuel prices and reduced subsidies on petrol vehicles.
Consumer income levels have increased due to salary hikes in the IT sector. The government has introduced tax incentives for electric vehicle buyers.
There has been growing environmental awareness among consumers. The price of public transport passes has increased.
A reputed automobile brand has launched a cheaper substitute electric scooter. Despite no change in EcoRide’s product price, sales volume has increased noticeably. Using demand theory, evaluate how each of the above factors would individually affect the demand for EcoRide scooters. Clearly identify which factors would cause a rightward shift and which would cause a leftward shift of the demand curve, and distinguish clearly between a movement along the demand curve and a shift of the demand curve in this context.
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Q2 (A) A domestic airline reduces the ticket price for a popular route from Rs.5,000 to Rs.4,000. As a result, the number of passengers increases from 10,000 per month to 13,000 per month.The management wants to understand whether the price cut improved total revenue and whether similar pricing strategies should be adopted on other routes.
Compute the price elasticity of demand. Based on your result determine whether
demand is elastic, inelastic, or unitary elastic .
Q2 (B) A multinational telecom company is entering a new international market where there is no historical sales data for its smartphones. Due to high uncertainty regarding consumer preferences, pricing sensitivity, and competitive response, the marketing director proposes using the Delphi technique to forecast initial demand for inventory planning and promotional campaigns.
Evaluate the suitability of the Delphi technique in this context and explain how this technique works. Illustrate with a relevant example of how telecom experts’ opinions could be used to estimate demand.
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