NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: Business Economics

Internal Assignment Applicable for April 2021 Examination

1. What do you mean by demand Forecasting? Enumerate the limitations of demand
forecasting (10 Marks)

2. Complete the hypothetical table below and explain in brief, the behaviour of each type
of cost.
 

Quantity Total
Fixed
Cost
Total
Variable
Cost

Total
Cost
Average
Fixed
Cost

Average
Variable
Cost

Average
Total
Costa

Marginal
Cost

0 100 0
1 100 25
2 100 40
3 100 50
4 100 60
5 100 80
6 100 110

(10 Marks)

3.a. Assume that a business firm supplied 450 units at price Rs 4500.The firm has decided to
increase the price of the product to Rs 5500. Consequently, the supply of the product is
increased to 600 Units. Calculate the elasticity of supply. (5 Marks)

3.b. From the given demand Schedule, calculate the price elasticity of demand.

Price of Air Tickets (Per
Tickets )

Quantity Demanded
(tickets per month)

1,00,000 5,000
1,20.000 3,500