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Attempt All The Questions, Show Calulations and Draw Graphs Where Applicable

This document contains instructions for a midterm exam with two questions. [1] Question 1 asks about the market for apples in Turkey and determines the equilibrium price and quantity, examines the impact of improved apple seed technology, and calculates price elasticity of demand. [2] Question 2 examines production possibilities for mangoes and oranges given labor hours in Baku, identifying efficient, inefficient, and unattainable production points on a graph. [3] Students are instructed to show all work and calculations for full credit.

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Ansu Anas
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83 views1 page

Attempt All The Questions, Show Calulations and Draw Graphs Where Applicable

This document contains instructions for a midterm exam with two questions. [1] Question 1 asks about the market for apples in Turkey and determines the equilibrium price and quantity, examines the impact of improved apple seed technology, and calculates price elasticity of demand. [2] Question 2 examines production possibilities for mangoes and oranges given labor hours in Baku, identifying efficient, inefficient, and unattainable production points on a graph. [3] Students are instructed to show all work and calculations for full credit.

Uploaded by

Ansu Anas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Hourly-I Midterm Examination

Subject: Microeconomics
Date: Monday, April 05, 2021 Duration: 1 hour (03:05-04:05) + 20 mins for submission
Instructor: Ms. Javaria Shaikh
Program: BBA Max. Marks: 15
Name: ______________________________ Registration No: _________________
INSTRUCTIONS:
ATTEMPT ALL THE QUESTIONS, SHOW CALULATIONS AND DRAW GRAPHS WHERE
APPLICABLE.
Question 01 10 Marks
Suppose the following information is available for the Apples market in Turkey for breakfast. Given the
data answer the following questions:

Price per kg Quantity Demanded Quantity Supplied


20 600 200
30 500 300
40 400 400
50 300 500
60 200 600

a. Determine the market equilibrium price and quantity for apples. 2


marks
b. Suppose, there is an improvement in the technology of genetically modifying apple seeds. Reflect
its impact on the analysis in part ‘a’. 3 marks
c. Suppose the price is fixed at Rs. 30 per kg, using your answer in part ‘a’ reflect the impact it is
going to create in the apple market. 2 marks
d. Using the midpoint formula calculate the price elasticity of demand when price increased from 30
per kg to 40 per kg. Also, derive the curve given the value of elasticity. 3 marks

Question 02 05 Marks
Suppose in Baku with total 300 minutes labour hours available the economy can only produce mangoes
and oranges. If it takes 120 minutes to produce 1 kg oranges and 60 minutes to produce 1 kg mangoes.
Answer the following questions:

a. Find the maximum oranges that can be produced.


Orange b. Find the maximum mangoes that can be produced.
s c. In the given figure, identify inefficient production point, briefly explain why it is
inefficient.
Mangoes

d. In the given figure, identify unattainable production point, briefly explain why it is
unattainable.
e. In the given figure, identify efficient and attainable production point, briefly explain
why it is efficient and attainable.

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