GIFT UNIVERSITY

GUJRANWALA
Semester fall 2019
Principles of Microeconomics (ECO-103)
Assignment No. 1 Marks 50
Please read the following Instructions carefully before attempting the assignment solution.

• Cheating or copying of assignment is strictly prohibited; No credit will be given to copied

assignment.
• Only hand written assignment will be accepted.
• The solution should be neat and well formatted.
• There is no need to use a file folder or file cover.
• Assignment should have proper Title Page mentioning, the;
1. Name of the Student
2. Roll No.
3. Course Title & Code
4. Section
5. Assignment No
• Clearly mention the question the same number given in the assignment in the solution.
• You can consult the concerned chapters from recommended books and related online
materials. However, keep in mind do not forget to give reference note in such case because it
will be treated as copying and cheating.
• Read question carefully and answer every point, you are required to explain.
• Show working where necessary.
• Negative marking will be done for copied assignments and irrelevant details.
• Make sure that you submit the Assignment before due date. No assignment will be accepted
after the due date. Last date is 5 Dec. 2019.
Questions Assignment 1:
Assignment 2 Total marks: 50
1. Calculate market demand for ice cream.

Price of ice-cream Catherine Nicholas Market

cone
$0.0 12 7
0.50 10 6
1.00 8 5
1.50 6 4
2.00 4 3
2.50 3 2
3.00 0 1
2. Calculate market supply for ice cream.

Price of ice-cream Ben Jerry Market

cone
$0.0 0 0
0.50 0 0
1.00 1 0
1.50 2 2
2.00 3 4
2.50 4 6
3.00 5 8
3. Illustrate the equilibrium price and quantity with the help of market demand and supply curves

4. Illustrate the factors affecting the demand and supply schedules.

Supply
Demand

5. How changes in supply and demand can affect equilibrium price and quantity in all the following cases.

Supply increase, demand decrease. Supply decrease, demand increase.

Supply increase, demand increase. Supply decrease, demand decrease.

Q6: Market research has revealed the following information about the market for ice cream. The
demand schedule can be represented by the equation Qd=480-40P, where Qd is the quantity demanded
and P is the price. The supply schedule can be represented by the equation Qs= -240+40P, where Qs is
the quantity supplied and P is the price. Calculate the equilibrium price and quantity in the market for
ice cream.