Indian Institute of Technology, Patna 1S201 - Micro Economics MID SEMESTER EXAMINATION FALL 2020 INSTRUCTIONS TO CANDIDATES. a) This is an open book examination, b) Write your name and roll number on the answer sheet c) The question paper comprises 3 pages 4) Answer all questions. Upload your handwritten answers showing all steps and diagrams wherever necessary. €) All questions have equal weight. 1) You will have to put your digital signature against the declaration below. Papers without the signatures will not be checked. . declare that | have not resorted to any unfair means in answering this paper. If found otherwise, | agree that my paper will be cancelled. chadak Name: Utkarsh Pathak ‘Signature: ‘Scanned with CamScannerName - Utkaysh Pathak Rou MOEES) Mid- Sementer Eraniuations, 1. 9 Using he 2008 price aud cincutation infouration, He Amand price eostielty for the New -York Tiassa edition is Demand, alas ty = Th change lM quantity dumarelid Yo thauge in ity price “hy change in = 3.640 quantily dewandid. : . iy = SLs = 20% 1h ange in She PA [25 ite elastietty © “36 = - 018 Prie el city 6 b) At Be puonent circulation Of tay ot walltion and price $150, ours 200 weekdays 0 year , eta the New York Thea! euruct annual eve fron weekday Aas, wilh be Ayal reuenut = 140% X [5X B00 = $46euiition MURUBVUUUU CII IIIa TEES ‘Scanned with CamScanner5 oe we te Chauge a ce ee 38.2341 Ls dx, change in Acvunue aboue #468 willow PHo]4sa = 85477, ee ‘h change nh Ate = % change impale x (1+ pal. elostiaity of aren gaty = 38.03 (1+ pale eloskletty of dammawd. ) Price elastietty = -OF- f. Ya tho ta Matonable differurce (—0.18 and 0-74) ; Mur both a elastio. 2. 0) Refoning fo te tahun, RFD Opaltins ond sles Peunue of Microsoft i 2005 wee 6194 mitdion ame ff 29,788 wtltion respect larly. Twrefone tre bales ratio in 2005 = CIB ee Osea 3198s ‘Scanned with CamScannerSOT TTT eee eee Tae aT a dls alga y | ‘lvdlondy for 2004, RED opurditore =$7799 million poles MUKUL= $26,935 iLlion baler raho = _TH74 36835 For 2003, pala — ependiture =fé5q5 mi Lhion paler revenue = f$32/187 2” pal. ratio= 6585 zon 32187 b) Tf the predteted ales auunue af Microsoft Aemaing Hie Jame in 1006 a4 th 2005 Qual the RFD expenclitoe Of the Lomparyy would. again teomate in 2006 from 2005 tn the sales nakio of Micocaft urould tnere- en ove in comparicon to 2005. The compe fsa the RED exparelitune bao S billion in 2006 4 Uempaseel to 20057. Thus total RED expendi Of Micromet in 2008 be comes = ( c1t4 meilion + 2.6 bittiod = Fe puillion Trowfine tte salty notte = $44 = gv y5 31488 which th qpeskotian the sales Anko in 2005, r00¢,2003 “Scanned with CamScannerfe) Re fot Mot te dale Aatto th 2006 dlecrases ir comp aison to 2005 becom Of jmowase Ww RSD exptrclture compatuel to wales rounne Indicates Hrat the Wmeporg nefgice wot be able to potentially be able to wr almond for te ee mifticient vase fle a Righir fnuertmont™ raw Winelows uouton» displ on FFD mega imp 2) Bord om LOneparey fhe NUL pooctteked fgict haut camond 4 nouemunt Of onadned produ I, deeigton fo prompty Launch vorston of windows in 2006 and the RED sales aotio, it bumt lompane our —estinated fe penditladtes af contrac pth keer warrior of watnolous - ‘Scanned with CamScanner~~2FCOCCCCECEETEEESESEERL Be Aune 2 Case a) fo vatshion ump tome Leen fee per year b) aye qowbbing toe, iain thet uniform pricing ik applied aud a fied rong tual cent od pos bet wa) Ae for on betting pau. fe coment , Pred paler awd vo tayad pia. Voli of betttag ¢ rina a Luspiow ammount hat alatnaty beer gluse to the gounomant Cio wsitiow) , He rau veolue of comdumirs pA tative expels & wots fo etour TU semen, fo adiabln wort to aktroc romance and wilt fol Thaalp und pusswn However f Te fh bauleg & goo Hime Th con wrolte Jeng prefits teow exputul ge aden 0 bump hum sano tak bean givan to pk | fa Maly 00g tani will ty ‘Scanned with CamScannerCare-b How foo, the pata of batty wilh be a fixed pre back pais will be taxed Reweces do goats wilt cepind om Hanout of tre Uankumer Drill ge be urs at to inugpecttue of Castro's porte. Hane, caginn will be mone cou how. ofan is no Hoshold fon jhe ontuwtrs and tan fous ow attracting mone conunaers - b> betting Tera i what J wi Accommuul fe place + Lump sum dee PO por 7 iE wtyact Bttm Hoe fyuanun geewratel Te boty few ame dawns ate tas Borttng » bask Tne lomg Mme as cetinn groin oma os pablitty Pt wt boeaafit the pet lad, frre won't be oe eas bat tre tontnimen's Housheld hence Nene Ping, pe eo foo. ‘Scanned with CamScanner VWNYONMDNADNRDPANAAAaee ee...SECEORCOECECEEOCS > Sarino's se ihala os qe" big elent *, A thee wheal Lou fluin bet, ja a chink benefit fp the Aatinod , Kawenun if tg wt Prete become hourer of dunt comme fom the caulro fo atfyact mon Whale avd Udtemos | indearctty boufitbiy fasm . dads should be made duels that toad howe. Wighir chant Gf lorting fw lous jun + ‘Scanned with CamScanner