Business Economics
1. Assume that a consumer consumes two commodities X and Y and makes five combinations
for the two commodities:
TABLE BELOW
| Combination | Units of X | Units of Y |
| A | 25 | 3 |
| B | 20 | 5 |
| C | 16 | 10 |
| D | 13 | 18 |
| E | 11 | 28 |
Calculate Marginal rate of Substitution and explain the answer.
2. Elaborate the term Total Revenue and Marginal revenue also calculate TR and MR in the given table
| Price | Output (In Units) | Total Revenue | Marginal Revenue |
| 20 | 1 | ||
| 18 | 2 | ||
| 16 | 3 | ||
| 14 | 4 | ||
| 12 | 5 |
3.a. From the given Demand Schedule for air tickets, calculate elasticity of demand.
| Price of Air Ticket (Per Ticket) | Quantity Demanded (Tickets per month) |
| 1,00,000 | 5,000 |
| 1,20,000 | 3,500 |
3.b. Elaborate the term Elasticity of Supply and explain any three factors that determines elasticity of supply.