**Theoretical Questions**

*Brief Question Answer marks 2*

- what are the uses of price elasticity of demand in business decision making ?[2076]
- State the degrees of price elasticity of supply ?[2075]
- What is the difference between price elasticity of demand and cross elasticity of demand ?[2073]
- What do you mean by cross elasticity of demand ?[2071]
- What is advertisement of elasticity of demand ?

**Descriptive Answer Question marks 10**

- What is price elasticity of demand ?How is it measured with help of point method ?[2072]
- How price elasticity of demand is measured with the help of point method ?[2072]

**Numerical Problems**

**Brief Answer Questions marks 2**

- Calculate price elasticity of supply by arc method when price increase from Rs 10 to Rs 20 and Quantity supplied increases from 40 units to 80 units? [2072]
- As a result of 2% fall in price of food its demand rises by 8% .Find out price elasticity of demand ?[2072]
- With the help of the information given below . Find out the cross elasticity of demand [2072]

Price of teaching ? (Rs) | Demand for Tea | Demand for coffee |

20 | 2000 | 1800 |

25 | 1500 | 2000 |

4. As a result of 5% fall in the price of food , its demand rises by 12% .Find out price elasticity of demand and say whether demand is elastic or inelastic .

you also read TU BBS Principles Of Management Important Question Collection 2079(chapter 11 Management Trends and Scenario In Nepal)

**Descriptive Answer Questions 10 marks**

1. Consider the following schedule [2076]

Points | A | B | C | D | E |

Px | 2 | 4 | 6 | 8 | 10 |

Qdx | 100 | 80 | 60 | 40 | 20 |

Qsx | 20 | 40 | 60 | 80 | 100 |

a. Compute price elasticity of demand at equilibrium price

b. Compute price elasticity supply at movement from B to D and D to B by percentage method

c. Compute price elasticity of supply at midway between B and D and D and B by arc method .

Also read Importance Equality and Equity For Social Development

2. Consider the following demand schedule [2075]

Points | A | B | C | D | E |

Px | 8 | 6 | 4 | 2 | 0 |

Qdx | 0 | 10 | 20 | 30 | 40 |

a. Compute price elasticity of demand at movement from B to D and D to B by proportion method.

b. Compute price elasticity of demand at midway between B and D and D and B by arc method .

c. Compute price elasticity of demand by total outlay method at movement from B to D

3. Suppose individual demand schedule for Suraj , sunny and Sushila are given below.[2071]

Price | Suraj’s Demand | Sunny’s demand | Sushila’s Demand |

10 | 160 | 80 | 40 |

20 | 80 | 40 | 20 |

30 | 40 | 20 | 10 |

40 | 20 | 10 | 0 |

50 | 0 | 0 | 0 |

a. Market demand schedule

b. Market demand curve

c. Elasticity of demand when price falls from Rs 30 to 20

d. Elasticity of demand when price rises from Rs 20 to 30.