Скачать или смотреть ECO 402|Microeconomic Assignment-1 Solution|2021|URDU|Hindi

ECO 402|Microeconomic Assignment-1 Solution|2021|URDU|Hindi

1 solution of eco402 MICROECONOMICS (ECO402) ASSIGNMENT # 01 DUE DATE: MAY 24, 2021 MARKS: 10 ASSIGNMENT # 01 The Case: Lemon is a popular fruit, which is used to add flavor to food. Lemons give flavor to baked goods, marinades, sauces, salad dressings, desserts, and drinks. It is also a good source of vitamin C. One 58-gram lemon can provide over 30 milligrams of vitamin C. In Pakistan, vegetable prices showed sharp increase during month of Ramazan. The demand of lemons has been increased in the month of Ramadan, which was responsible for the increase in price of lemons. Suppose the initial demand and supply equations of lemons are given as follows:
Qs = 260 + 0.40P Qd =330 - 0.30P In the month of Ramadan, the supply equation of lemons remained as above while the demand equation of lemons became: Qd =350 - 0.20P Requirement:
a) Find the market clearing level of quantity and price of lemons before demand change.
b) Find the market clearing level of quantity and price of lemons after demand change.
c) Find out the price elasticity of demand of lemons at initial equilibrium price and quantity. Marks: (3+3+4)