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# Solved assignments for NMIMS - Determinant of demand are the important factor which influ

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Business Economics

1. Calculate the following: (10 Marks)

Quantity Total Fixed Cost Total Variable Cost Total Cost Average Cost Marginal Cost
25 10 18 ? ? ?
26 10 20 ? ? ?
27 10 21 ? ? ?
2. “Determinant of demand are the important factor which influences the decision of the consumers to purchase commodity or a service” With respect to the above statement discuss any 5 determinants of the individual demand. (10 Marks)
3 a. Suppose the monthly income of an individual increases from Rs. 10,000 to Rs. 15,000 which increases his demand for clothes from 20 units to 25 units. Calculate the income elasticity of demand and interpret the result. (5 Marks)
b. Quantity demanded for tea has increased from 100 to 160 units with an increase in the price of the coffee powder from Rs. 40 to Rs. 50. Calculate the cross elasticity of demand between tea and coffee and explain the relationship between the goods. (5 Marks)

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