1. Assume that a consumer consumes two commodities X and Y and makes five combinations
for the two commodities:
|Combination||Units of X||Units of Y|
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|
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)|
3.b. Elaborate the term Elasticity of Supply and explain any three factors that determines elasticity of supply.