Notre Dame University

Bangladesh
Fall 2020 Trimester
Final Assessment Script

Student ID: 193010020 Dept.: Business Administration Section: ……….

Course Code: ECO 2102 Course Title: Microeconomics

Batch: BBA-15 Trimester & Date of submission: 21/12/20

..write below … write below …write below … write below … write below … write below … write below … write below … write below … write below ..

Answer to The Question No – 1 (a)

Economics define normal goods as having positive income elasticity. And we can divide normal goods
into tow types:
Income elasticity is less than one – Water and
Income elasticity is greater than one – designer handbag.
Generally Normal goods or products whose demand increases when income increase and falls when
income falls. When income elasticity is less than one it is known as inelastic demand and when income
elasticity is greater than one than it is know as elastic demand. Actually, goods or product which is
necessity are examples of goods with inelastic demand, for example water A person cannot do any
without water as it is needed for survival, if income increase, there would be little or no change in
quantity demanded luxury products typically have an elastic demand, as income increases, more of the
good or product would be demanded, for example luxury good is a designer handbag.

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 Answer to The question No- 1 (b)

The Corona virus disease 2019 has shaken whole world in a unpredicted way. Most of the people in our
world are affected this dangerous virus. This virus and a relative lack of countermeasures in the 1st
stages of the transmission resulted in more than 100000 death. Its spread can be most effectively
controlled by reducing interpersonal contact al though physical distancing covid – 19 has dramatically
impacted the restaurant industry. Government has enforced physical distancing orders by banning
restaurant’s dine in service.
Predicting trends and exploring the characteristics that influence consumer demand for all restaurant can
inform other restaurant. When restaurant’s demand as indicated by consumers restaurant choice.

Answer To The Question No- 3 (a)

Some Similarity between inequality curve and indifferent curve which is:
1. Both are convex to the origin.
2. They both are negatively inclined.
3. They Both do not touch each other.
4. Both are not necessarily parallel to each other.
So, therefore there are also some differences between indifferent curve and isoquant curve.

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