MIT ACADEMY OF ENGINEERING

COURSE CODE: HP401T 6 DECEMBER 2019

BTECH SEMESTER - VII 2019-2020 EXAMINATION
END SEMESTER EXAMINATION
ENGINEERING ECONOMICS
TIME : 2 HOURS MAX MARKS : 50 MARKS
TOTAL NO OF QUESTIONS: 5 TOTAL NO OF PRINTED PAGES: 2
INSTRUCTIONS TO CANDIDATES:
1. All questions are compulsory
2. Non programmable scientific calculators are allowed
3. Black figures to the right indicate full marks

1 a) What are the different types of price elasticity of demand? [5] CO1 L1

b) The equilibrium price of coffee mugs rose sharply last [2] CO1 L5
month,but the equilibrium quantiy was the same as
ever.Three people tried explaining the situation.Which
explanation could be right.Explain your logic.
1.Katy:Demand increased,but the supply was totally
inelastic
2. Dua:Supply increased,but so did demand
3.Cardi:Supply decreased ,but demand was totally inelastic

c) Suppose the price of basketball tickets at your college are [3] CO1 L3
determined by the market forces. Currently the demand
and supply schedulers are as follows:
Price Quantity Quantity Supplied
Demanded
200 rs 10000 tickets 8000 tickets
400 8000 8000
600 6000 8000
800 4000 8000
1000 2000 8000

[1]
 1. Draw the demand and supply curves. What is unsuual
about this supply curve?
2. Wathe equilibrium price and quantity of tickets?
3. Suppose your college plans to increase total enrollment
next year by 5000 students. The additional students will
have the following demand schedule.

Price Quantity Demanded

200 rs 4000 tickets
400 3000
600 2000
800 1000
1000 0
Now obtain a new demand schedule for the entire college.
What will be the new equilibrium price and quantity?
2 a) Calculare Total Revenue, Average Revenue and Marginal [5] CO2 L3
Revenue for the following schedule.
Quantity Price
Demanded
7 90
8 85
9 80
10 75
11 70
12 65
13 60
14 55

b) What are the features of a monopolistic competitive [5] CO2 L1

market?
3 a) What is unemployment?What are the types and causes? [6] CO3 L1
b) Explain how Human Development Index is calculated. [4] CO3 L4
4 a) Show the two sector model of circular flow of income. [4] CO4 L2
b) Elaborate. 1.Gross Domestic Product 2.Net National [6] CO4 L6
Product
5 State the different functions of a commercial bank. [10] CO5 L1

[2]