ECON 301 – What is the scope of industrial economics? Also discuss its importance

UNIVERSITY OF MODERN SCIENCES
College of Business
Fall 2015-16

Course Name:
Business and Industrial Economics

Course Code: ECON 301

Assessment: Assignment

Submission Date: November 20, 2015

Student Name:
—————————————————————–

Student ID:
—————————-Section { }

Total Points: 20

Weightage 20%

INSTRUCTIONS
TO THE CANDIDATES:
¤ This
is individual assessment. Group work is not allowed.
¤
In mentioned cases provide a neat diagram to
explain your answer. Make sure to label axes properly. Else points will be
deducted
¤
PLEASE SUBMIT the Assignment through STUDENT
PORTAL
¤
You can use our lecture notes, internet sources
and text book mentioned at the end to prepare this assignment.
¤
Assignments submitted through Student Portal will
be marked ONLY
¤ The
Assignments submitted after DUE DATE will not be ENTERTAINED

assignment
Questions

What is the scope of industrial economics? Also discuss
its importance.(Points-1)

What role industrial economics plays in economic
development of a country?(Point-1)

3. (a) At
what price and output level the market will be in equilibrium? (Point-1)
Qd = 100 – 6P
Qs
= 28 + 3P

Where
Qdis quantity demanded, Qs is quantity supplied while P
is the price of good.
(b) At what price and output level the market
will be in equilibrium? (Point-1)
Qd = 100 – 2P
Qs = -20 + 1P
Where
Qdis quantity demanded, Qs is quantity supplied while P
is the price of good.

4. Define
Consumer
Surplus and Producer Surplus? Use neat diagrams to explain Consumer and
Producer Surplus? (Points-2)

5. Define
the Law of Supply? Keeping in view the Law of Supply, how the following
factors will shift the supply curve?
(Each answer must be supported by a neat diagram): (Points-2)

a)
If number of producers
increases in the market;
b)
If there is an
advancement in electronics technology;
c)
If the prices of raw
material increases in automotive industry;
d)
If there is an
expectation of increase in oil prices during next month.

6. Explain
the Law of Demand. What are their assumptions? What are demand curve shifters
and what causes them to shift? (Points-2)

7. What
is market equilibrium? What might keep the market from moving all the way to
that equilibrium point? (Points-2)

8. “Price
control can be more effective in the short run than the long run”. Explain. How
could price controls affect a firm’s incentive to innovate? (Points-2)

9. What
are various types of elasticity of demand? Explain with examples. (Points-2)

Suppose
that a producer raises the price of a good from $8 to $15, and the
quantity sold drops from 250 to 40 units. Is the demand for the good is
elastic or inelastic? (Points-2)

11. Define
and explainperfect
competition, monopoly and oligopoly. Why firms do
price discrimination? (Points-2)

TEXT BOOKS:
Roger G. Clarke,
Industrial Economics (latest edition), Wiley Blackwell, ISBN # 978-0631143055
John Sloman, Kevin Hinde,
Dean Garratt: Economics for Business, Pearson, 2013. ISBN # 978-0273792598
John Sloman and Elizabeth
Jones: Essential Economics for Business, 4th edition, Pearson, 2014. ISBN #
978-129200080