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Assignment No. 1

Course: Course Code: Program: Teacher Name: Submitted By: Registration No:

BUSINESS ECONOMICS ECO - 400 EMBA ADEEBA ISHAQ MUHAMMAD MEHMOOD ZEESHAN CIIT/FA13-EMBA-010/CVC

BUSINESS ECONOMICS ECO400

Q1: To test your understanding of demand and supply analysis, I am giving you
six generic results from the interaction of supply and demand. Your job is to decide what shifts produced those results. The shifts are given without graphical description. On the left-hand side of the table below, I list combinations of movements of observed prices and quantities, labeling them 16. On the right we give six shifts in supply and demand, labeling them af.

You are to match the shifts with the price and quantity movements that best fit each described shift, using each shift and movement only once. My recommendation to you is to draw the graphs that are taught in lecture 3 decide what happens to price and quantity and then find the match in 16.

Answer:
1. Option c Demand shifts in. No change in supply.

P2

4 Price per Unit

P1

1 Q1 1 2 3 Quantity
Business Economics- ECO 400 Submitted By: Muhammad Mehmood Zeeshan Registration No: CIIT/FA13-EMBA-010/CVC

Q2 5
Page 2 of 5

BUSINESS ECONOMICS ECO400 2. Option a Supply shifts in. No change in demand.

P2

4 Price per Unit P1 3

1 Q2 1 2 3 Quantity 4 Q1 5

3. Option f Demand shifts in. Supply shifts out.

P2

4 Price per Unit P1

1 Q2 1 2 3 Quantity
Business Economics- ECO 400 Submitted By: Muhammad Mehmood Zeeshan Registration No: CIIT/FA13-EMBA-010/CVC

Q1 4 5
Page 3 of 5

BUSINESS ECONOMICS ECO400 4. Option b Demand shifts out. Supply shifts in.

P1

4 Price per Unit P2

1 Q1 5

3 Quantity

5. Option d Demand shifts out. Supply shifts out.

4 Price per Unit

P1

1 Q1 1 2 3 Quantity
Business Economics- ECO 400 Submitted By: Muhammad Mehmood Zeeshan Registration No: CIIT/FA13-EMBA-010/CVC

Q2 5
Page 4 of 5

BUSINESS ECONOMICS ECO400 6. Option e Demand shifts out. No change in supply.

P1

4 Price per Unit

P2

1 Q2 1 2 3 Quantity 4 Q1 5

Page 5 of 5 Business Economics- ECO 400 Submitted By: Muhammad Mehmood Zeeshan Registration No: CIIT/FA13-EMBA-010/CVC