__Business Economics__

__Business Economics__

##### 1. Suppose the demand equation for computers by Teetan Ltd for the year 2017 is given by Qd= 1200-P and the supply equation is given by Qs= 120+3P. Find equilibrium price and analyse what would be the excess demand or supply if price changes to Rs 400 and Rs 120.

##### 2. Assume that at the price of ₹75, the demand for the product is 250 units. If the price of the product increases to ₹90, the demand decreases to 150 units. Calculate and analyse the difference in the value of price elasticity using Arc Elasticity Method and Percentage Method.

##### 3. Alpha Ltd was planning to start production next year. Different departments of the company were working together to forecast the demand of the product in the market.

##### a) If you are manager of the company mention the steps and the factors that would be relevant for forecasting the demand of rice in the market.

##### b) The price of rice and its demand (in kg) produced by Alpha Ltd in 2018 is given in the table. Fit a linear regression line and estimate and analyse the demand for rice when price is Rs 50 per kg.

## Price(Rs/kg) |
## 17 |
## 20 |
## 24 |
## 28 |
## 32 |

## Demand(Kg) |
## 80 |
## 75 |
## 65 |
## 60 |
## 54 |