1. Demandforproductxdecreasefrom60unitsto40units whenpriceofproductydecreaseto10takafrom12taka.Findtheelasticityofdemandandcommentontheresult
2. Demandforaproductdecreasefrom150unitsto100unitswhenincomesincreasesto 1600dollarfrom 1200dollar.Findtheincomeelasticdemand andcommentonresult

Section: A 01. How does the market reach to the equilibrium with the interaction of demand and supply schedule? 02. Define and distinguish between price support polkcy and price floor mechanism. 03. What happens to the equilibrium if the price of a product suddenly declines? Show with the help of demand and supply curve. 04. What happens to the equilibrium if the price of a product suddenly increases? show with the help of demand and supply curve. 05. Demand for a product x decreases from 60 units to 40 units when price of product Y decreases to 10 take from 12 taka. Find the elasticity of demand and comment on the result. 06. Dernand for a product decreases from 150 units to 100 units when income increases to 1600 take from 1200 taka. Find the income elasticity if demand and comment on the result. 07. Prove that producers pay major portion of indirect tax when the demand for the product is elastic. 08. "Price reduction is the best possible strategy for a demand inelastic product . Do you agree with the statement? If yes, prove it, if not, explain why not. 09. Section: B 01. Explain the impacts of price ceiling imposed by the government. Is there any suggestion you have for government to reduce social loss that might have been created through price ceiling? 02. As a manager how your pricing decision is dictated by the concepts of elasticity. Explain with examples. 03. Use following data set to answer the questions below the table. Price QD 80 600 1200 90 800 1100 100 1000 1000 110 1200 900a) Derive the equation for demand and supply curve. Find the equilibrium price and quantity and show the diagram. b) At price 70, whether a shortage or surplus will be created? How much will be the value of shortage or surplus. 04. Use following data set to answer the questions below the table. Price QD Qs 12 140 20 20 100 100 28 60 180 36 20 260 a) Derive the equation for demand and supply curve. Find the equilibrium price and quantity and show the diagram. b) Now assume that government has imposed a Goods and Service Tax (GST) of 3 taka on this product. Find the new equilibrium and quantity. c) Is there any dead weighted loss created due to this action? If yes, calculate the amount of dead weighted loss. 05. Suppose, the market for rice in Rajshahi can be described as follows: The demand for rice is linear and when the price of rice is TK 800, zero tons of the good are demanded. When the price of the rice is TK. 0, then 800 tons of rice are demanded. The supply of rice is linear too and when the price of rice is TK 100, zero tons of the good are supplied. When the price of the rice is TK. 1000, then 900 tons of rice are supplied. a) Given the above information, find the equilibrium quantity and price in the rice market. b) Suppose a price ceiling of TK. 400 per ton is imposed by the local city council. Calculate the change in consumer and producer surplus. 06. Explain the impacts of imposing tariff by the government