ECO606 Assignment No 3 Solution Autumn 2021-VU-Semester Fall 2021
ECO606 Assignment No 3 Solution Autumn 2021-VU-Mathematical Economics
Question No. 1
Quantity demanded of Beef (QB) is a function of the price of beef (PB), price of mutton (PM) and income (Y);
Qb=5200-1.5Pb+2.5Pm+0.25Y
Find out income elasticity of demand for beef if PB = 100, PM = 250, and Y = 5000
Question No. 2
Given the quantity demanded function;
Qd=250-3P+0.05Y
find out price elasticity of demand at P = 25 and income elasticity of demand at Y = 2200.
XYZ Limited has planned the construction of a plant for production at another site. The construction will be required a huge amount. This may also require importing some machinery as well. The following information has been extracted from the balance sheet of XYZ Limited as of 31st December 2020
Outstanding Loans:
Loan A @ 19% p.a Rs. 1,500,000
Loan B @ 15% p.a Rs. 3,500,000
Loan C @ 21% p.a Rs. 2,500,000
Loan A and Loan C were taken at the start of the financial Year 2020 whereas, Loan B was taken on March 31st, 2020. The import duty of Rs. 100,000 also paid after deducting the government subsidy given of Rs. 100,000 on import duty. Other than these expenses, XYZ Company Limited has incurred the following expenditure during the year on plants under
construction
February 01, 2020 500,000
April 30, 2020 700,000
September 30, 2020 1,300,000
Required
Determine the capitalization rate and total cost to be capitalized on the construction of the plant till the date
Question No. 1
Quantity demanded of Beef (QB) is a function of the price of beef (PB), price of mutton (PM) and income (Y);
Qb=5200-1.5Pb+2.5Pm+0.25Y
Find out income elasticity of demand for beef if PB = 100, PM = 250, and Y = 5000
Question No. 2
Given the quantity demanded function;
Qd=250-3P+0.05Y
find out price elasticity of demand at P = 25 and income elasticity of demand at Y = 2200.
XYZ Limited has planned the construction of a plant for production at another site. The construction will be required a huge amount. This may also require importing some machinery as well. The following information has been extracted from the balance sheet of XYZ Limited as of 31st December 2020
Outstanding Loans:
Loan A @ 19% p.a Rs. 1,500,000
Loan B @ 15% p.a Rs. 3,500,000
Loan C @ 21% p.a Rs. 2,500,000
Loan A and Loan C were taken at the start of the financial Year 2020 whereas, Loan B was taken on March 31st, 2020. The import duty of Rs. 100,000 also paid after deducting the government subsidy given of Rs. 100,000 on import duty. Other than these expenses, XYZ Company Limited has incurred the following expenditure during the year on plants under
construction
February 01, 2020 500,000
April 30, 2020 700,000
September 30, 2020 1,300,000
Required
Determine the capitalization rate and total cost to be capitalized on the construction of the plant till the date
Transcript
00:00Assalamualaikum Dear Students and Viewers, Welcome to my YouTube Channel DG Thunder Point.
00:06In today's video tutorial, we will solve Mathematical Economics 1, subject is ECO-606,
00:14and its standard number is 3.
00:17Its submission date is 23rd February 2022.
00:27Its total marks is 10.
00:30There are 2 questions, each question has 5 marks.
00:35So, let's start our question.
00:37Let's understand it, then we will move towards the solution.
00:40Question no.1
00:42Quantity demanded of Beef is a function of Price of Beef, Pb, Price of Mutton, Pm, and Income.
01:04Can I find out the Income Elasticity of Demand for Beef if Pb is equal to 100, Pm is equal to 250, and Y is equal to 5000?
01:16Can I find out the Income Elasticity of Demand for Beef if Pb is equal to 100, Pm is equal to 250, and Y is equal to 5000?
01:24Total marks are 5.
01:26Question no.2
01:28Can I find out the Income Elasticity of Demand for Beef if Pb is equal to 200, Pm is equal to 5000?
01:56Total marks are 2.5 and 2.5.
02:00You can read out the rest of the instructions.
02:04Let's move towards the solution.
02:06The quantity demanded function of Beef is 5200-1.5 Pb plus 2.5 Pm plus 0.25 Y.
02:20I have declared it as a question.
02:22If there is a mistake in the multiplication, please share it in the comment section.
02:38In question no.1, we have to determine the Income Elasticity of Demand.
02:46In question no.2, we have to determine the Income Elasticity of Demand.
03:12In question no.3, we have to determine the Income Elasticity of Demand.
03:40In question no.4, we have to determine the Income Elasticity of Demand.
04:08In question no.5, we have to determine the Income Elasticity of Demand.
04:36In question no.6, we have to determine the Income Elasticity of Demand.
04:56In question no.7, we have to determine the Income Elasticity of Demand.
05:24In question no.8, we have to determine the Income Elasticity of Demand.
05:52In question no.9, we have to determine the Income Elasticity of Demand.
06:20In question no.10, we have to determine the Income Elasticity of Demand.
06:30In question no.2, we have to determine the Income Elasticity of Demand.
06:54In question no.3, we have to determine the Income Elasticity of Demand.
07:20In question no.4, we have to determine the Income Elasticity of Demand.
07:50In question no.5, we have to determine the Income Elasticity of Demand.
08:20In question no.4, we have to determine the Income Elasticity of Demand.
08:46In question no.5, we have to determine the Income Elasticity of Demand.
09:16In question no.6, we have to determine the Income Elasticity of Demand.
09:42In question no.7, we have to determine the Income Elasticity of Demand.
10:08In question no.8, we have to determine the Income Elasticity of Demand.
10:38In question no.9, we have to determine the Income Elasticity of Demand.
11:08In question no.10, we have to determine the Income Elasticity of Demand.