Managerial Economics: Comprehensive Solved Assignment - Year 2019

This document presents a solved assignment for a Managerial Economics course, featuring 21 questions covering various topics. The solutions include multiple-choice answers, elasticity computations, inflation calculations, and problem-solving related to demand and supply. Specific calculations for price elasticity of demand at different points are provided, along with inflation rates for the years 2016, 2017, and 2018. Additionally, the assignment addresses equilibrium price and quantity determination and profit analysis for a firm, as well as concepts related to monopoly. This solved assignment is a valuable resource for students studying managerial economics, offering detailed solutions and explanations for a range of economic problems.

ECONOMICS
STUDENT ID:
[Pick the date]

Question 1- Option C
Question 2 - Option D
Question 3 – Option D
Question 4- Option E
Question 5- Option A
Question 6 – Option D
Question 7 – Option A
Question 8 – Option C
Question 9 – Option C
Question 10 – Option C
Question 11 – Option D
Question 12 – Option A
Question 13 – Option E
Question 14 – Option E
Question 15 – Option A
Question 16 - The requisite table is indicated below (Assuming that answers have to be
rounded to zero decimal place)

Question 17 – The elasticity computation is shown below.
Price at point A = 105,000/1500 = R 70
Price at point B = 130,000/2000 = R 65
Price at point C = 150,000/2500 = R 60
Price at point D = 165,000/3,000 = R 55
Price at point E = 175,000/3,500 = R 50
Price at point F = 180,000/4,000 = R 45
Price at point G = 180,000/4,500 = R 40
Price at point H = 175,000/5,000 = R 35
Price at point I = 165,000/5,500 = R 30

Elasticity of demand between A and B = (25000/105000)/(-5/70) = -3.33 (Please adjust the
decimals as per the requirement)
Elasticity of demand between B and C = (20000/130000)/(-5/65) = -2
Elasticity of demand between C and D = (15000/150000)/(-5/60) = -1.2
Elasticity of demand between D and E = (10000/165000)/(-5/55) = -0.67 (Please adjust the
decimals as per the requirement)
Elasticity of demand between E and F = (5000/175000)/(-5/50) = -0.29 (Please adjust the
decimals as per the requirement)
Elasticity of demand between F and G = 0
Elasticity of demand between G and H= (-5000/180000)/(-5/40) = 0.22 (Please adjust the
decimals as per the requirement)
Elasticity of demand between H and I = (-10000/175000)/(-5/35) = 0.4
Question 18 – The inflation computation is shown below.
Inflation in 2016 = [(96650-91000)/91000]*100 = 6.21% (Please adjust the answer as per the
decimal places allowed)
Inflation in 2017 = [(99930-96650)/96650]*100 = 3.39% (Please adjust the answer as per the
decimal places allowed)
Inflation in 2018 = [(104275-99930)/99930]*100 = 4.35% (Please adjust the answer as per
the decimal places allowed)
Question 19 –
a) Pd = 8500 – 250Q
PS = 1500 + 250Q
b) Pd = 10000 – 250Q

Ps = 2000 + 250Q
Question 20
a) P = R 200
Q = 90
b) Yes, the firm is able to generate profit to the tune of R 2250.
Question 21 – Monopoly