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Assignment 2

The document is an assignment from a business economics class asking students to answer questions about demand curves and goods. It instructs students to read the relevant chapter and class lectures before answering questions about what determines demand quantity, the relationship between demand schedules and curves and why curves slope downward. It also asks about whether changes in tastes or prices lead to curve movements or shifts, and to determine if a good is inferior or normal based on a scenario about a person's purchasing behavior after an income decline. The assignment must be handwritten on designated paper.

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Muhammad Aftab Ahmed
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46 views

Assignment 2

The document is an assignment from a business economics class asking students to answer questions about demand curves and goods. It instructs students to read the relevant chapter and class lectures before answering questions about what determines demand quantity, the relationship between demand schedules and curves and why curves slope downward. It also asks about whether changes in tastes or prices lead to curve movements or shifts, and to determine if a good is inferior or normal based on a scenario about a person's purchasing behavior after an income decline. The assignment must be handwritten on designated paper.

Uploaded by

Muhammad Aftab Ahmed
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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INSTITUTE OF BUSINESS MANAGEMENT

COLLEGE OF BUSINESS MANAGEMENT

ECO 409 Business Economics

Assignment # 2 Due Date: 28-09-2019

Note: Read Chapter 4 and go through the class lectures carefully before solving this
assignment.

1. What determines the quantity of a good that buyers demand?


2. What are the demand schedule and the demand curve, and how are they related? Why does the demand
curve slope downward?
3. Does a change in consumers’ tastes lead to a movement along the demand curve or a shift in the
demand curve? Does a change in price lead to a movement along the demand curve or a shift in the
demand curve?
4. Carlos prefers asparagus to spinach. His income declines and as a result he buys more spinach. Is
spinach an inferior or a normal good to Carlos? Explain your answer.

Note: The assignment should be hand written on foolscap sheets.

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