MANAGERIAL ECONOMICS QUESTIONS

(MBA HIMS )

1. What is elasticity of demand and how can; price of the commodity,

income of the consumer, prices of related goods, taste of the
consumers, wealth, population, government policy, expectations
regarding the future, climate and weather, state of business. Be
considered as a determinant of elasticity of demand of any business
of your choice.
2. Based on the principles of elasticity of demand, show how
government policy expectation regarding the future and state of the
business can be good determinant of any business of your choice.
3. Has elasticity of demand of any value judgment, can it enable you
take a decision? If yes How ?

4. A complete market is very challenging when it comes to decision

making. In real life situations consider the changes in demand and
changes in supply simultaneously In a market within the same
period of time
a) State and evaluate the extend to which such changes will affect
the behaviour of the consumer as well as the producer
b) Consider yourself as a consultant to the situation at hand what
advice can you render to the consumer as well as the producer for
feature uses. 20mks
5. The government as well as the traditional authorities are the
custodians of rules and regulations governing the production and
consumption of goods and services in an economy where the belong
example can be traced in the economy of Cameroon which have
 their production power. How ever such rules and regulations might
be limited if not properly enforced and implemented . with the aid of
any goods of your choice under the principle of maximum and
minimum price legislating ascertain the reality of the above
statement . 20mks
6. In any production process cost is involved by the principles of cobb
Douglas production function , total output is a function of Kapital
and labour where Kapital is considered as a fixed cost of production
and labour a variable cost of production therefore where in the
production process capital labour and entrepreneurship are required ,
the classical observed that only two features can be used . given a
firm of your choice as a unit of production , identify the critical
value in process of production making. 20mks