 Economics Assignment Questions

## Popular Questions for Economics Assignments

To help students understand the wide variety of assistance with  Economics assignment questions we have successfully delivered in the past, we are showcasing a small sample of University Assessments related to Economics

Q.What is the midpoint method for calculating price elasticity of demand? How else can the price elasticity of demand be calculated? What is the advantage of the midpoint formula?

Q.What are the key determinants of the price elasticity of demand for a product? What determinant is the most important?

Q.In 2003, when music downloading first took off, Universal Music slashed the average price of a CD from \$21 to \$15. The company expected the price cut to boost the quantity of CDs sold by 30 per cent, other things remaining the same. What was Universal Music’s estimate of the price elasticity of demand for CDs? If you were making the pricing decision at Universal Music, what would be your pricing decision? Explain your decision.

Q A 5 per cent fall in the price of chocolate sauce increases the quantity of chocolate sauce demanded by 10 per cent; and with no change in the price of ice cream, the quantity of ice cream demanded increases by 15 per cent. Calculate the price elasticity of demand for chocolate sauce. Calculate the cross elasticity of demand for ice cream with respect to the price of chocolate sauce. Are ice cream and chocolate sauce substitutes or complements? Why?

Q.Explain why real GDP might be an unreliable indicator of the standard of living.

Q.Why does unemployment arise and what makes some unemployment unavoidable?

Q.Consider the following statement: ‘When the average level of prices of goods and services rises, inflation rises’? Do you agree or disagree? Explain.

Q.What is the aggregate demand (AD) curve and why does it slope downwards? Explain.

Q.What is the long run aggregate supply (LRAS) curve and why is it vertical? Why does the short run aggregate supply curve slope upwards?