Kingdom of Saudi Arabia

Royal Commission at Yanbu

Yanbu University College (Women`s Campus)
Department of Management Sciences and Industrial Management Technology
Yanbu Al-Sinaiyah

«A.Y.: 2024-
GROUP ASSIGNMENT ECON101- MICRO ECONOMICS 2025»
SEM 461

Availability FOR INSTRUCTOR USE: CLO/PLO TABLE

MONDAY
Day:
Max
CLO-PLO Q.No. Max Scored
Mark
Availability
Date: 30 September, 2024 (Week 6) 1.1 – K3 1 04

2 .1– S3 2 03
Wednesday
Due Date: 2.1 – C3 3 05
30 October ,2024 (week 10)
2.2– C3 4 04

GROUP: 3.1 – S3 5 03
COMPANY:
3.2-C3 6 05

ID NAME SEC 3.3-S3 7 06

3.4-E3 1-7 05

35
TOTAL

Teacher: Ms.Farha Zeba

Signature: _________________________

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 GENERAL INSTRUCTIONS TO THE STUDENTS

1. Students must read all the instructions carefully before starting the assignment.
2. The group leader must attach the cover page and instructions page along with their assignment report.
3. This assignment guideline consists of 8 pages.
4. The total marks for the project are 35.
5. The assignment rubrics are given at the end of the project.
6. The students are required to do this assignmnet in group of 4-5.
7. Individual assignments will not be accepted.
8. The students must follow the following format while writing the report. Report format carries 5 marks:
a. Times New Roman Fonts
b. Headings Bold size :14
c. Text size:12
d. Spacing between the lines must be 1.5
e. Spacing between the paragraphs must be 2.0
f. Text justified
g. Insert question numbers
h. Insert page numbers
i. References

9. Only group leader is required to submit one hardcopy in my office number A-149. As such only one
submission per group is allowed.

10. The group leader must submit their project report hardcopy in Word file .

11. Each group is pre assigned a company/product which can be viewed from the group project list in
blackboard

12. Students should write their project report in their own words. Any citations, quotations from any other
sources must be included in the references and must not be shown as their own work. This will be counted as
plagiarism and may cause cancellation of their project report.

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13. The student’s must include color pictures, figures, charts, etc. in their report wherever necessary.

14. The group leader is responsible to coordinate among the group members, assign tasks equally, monitor
the progress of the assignment and submit the final report of the assignment before due date. Any
complaints either from the group leader or group members must be addressed to me as soon as possible. Any
last moment complaints from the group members or group leader will not be entertained.

15. If any group member is found non cooperating / not following group leader instructions shall receive
initial warning and if she does not correct her behavior shall receive negative marking solely on her part.
The groups marks shall not be affected.

16. Late submissions are not accepted.

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 Principles of Economics

A key skill in economics is the ability to use the concept of opportunity cost, supply and demand their
equilibrium and their elasticities to analyze specific markets. In this project you get a chance to demonstrate
your ability to analyze the effects of all the factors that cause a change in demand & supply as well as a change
in quantity demand and quantity supplied for a specific commodity. Answer all parts of each of the scenarios
below.

This project is based on all modules in this course. An in-depth knowledge of the chapters is essential to
answer all the scenarios given.

Production possibility curve (PPC)

Scenario1:
a. If your company can make two goods, use a numerical table and list different combinations of two goods
your company can make.
b. Draw a PPC and show the different combinations on the graph. Show the attainable and unattainable output
levels on the graph.
c. Show the opportunity cost of one good in terms of another.
d. What happens to the opportunity cost? (Increases, decreases or remain constant)

LAW OF DEMAND

Scenario 2:
a. If the company decides to earn more profits and hence decide to increase the price of their product. Use a
numerical table of price and demand to explain.
b. What effect this increase in prices will have on consumers demand? Is it called a change in quantity demand
or change in demand? Why?
c. Draw and show this effect with the help of a demand curve.

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 ELASTICITY OF DEMAND

Scenario 3:

a. If your company’s product has many substitutes in the market, what happens to the elasticity of your product?
If your company’s product has few substitutes in the market, what happens to the elasticity of your product?
If your company’s product has no substitutes in the market, what happens to the elasticity of your product.
b. Use a numerical data of price and demand to show the price elasticity of your good.
c. Draw and show this effect of change in price on the demand for your company’s product with the help of a
demand curve.

LAW OF SUPPLY

Scenario 4:

a. Suppose your company produces a complementary good/service for its product? What happens to the
supply of one complementary good if the price of other complementary good rise.?
b. Suppose your company produces a substitute good/service for its product? What happens to the supply of
one substitute good if the price of other substitute good falls.?
c. Use a numerical table of price and supply to explain.
d. Is it called a change in supply or change in quantity supply? Why?

DEMAND & SUPPLY EQUILIBIRUM

Scenario 5:

a. Use a numerical table and show the demand and supply equilibrium for your product.
b. During long run what happened to the supply for your product? Draw the shift in the supply curve and
show.
c. How will this change affect the equilibrium price and quantity of the good? Give reasons for your answers.

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 Short Run Product & Cost

Scenario 6:

a. Use a numerical table and show different worker and output levels (TP) and calculate MP & AP in the short
run for your company.
b. Draw and show the behavior of TP, MP and AP curves.
c. Use a numerical table and show different output and cost (TC) in the short run and calculate TC,TFC, TVC,
AC, AVC, AFC, MC.
d. Draw and show the behavior of TC, TFC, TVC in the short run in a separate graph. Draw AC, AFC, AVC,
MC in separate graph. Show the point of diminishing returns in the graph.

Scenario7:

a. Is your company operating in a perfect market? If yes/no give reasons.

b. Use a numerical data to show your firms output and revenue in a perfect market in the short run. Calculate
TR, MR, AR, total profits, TC, MC and ATC,&AVC.
c. Draw TC and TR curves in one graph.
d. Draw MC, ATC, AVC and MR in one graph. Show profit maximization, shutdown point and losses in the
graph.

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 END OF THE PROJECT

PROJECT RUBRICS
Scenario Question Marks
1. PPC a. 1
a. If your company can make two goods, use a numerical table and list different b. 1
combinations of two goods your company can make. c. 1
b. Draw a PPC and show the different combinations on the graph. Show the attainable d. 1
and unattainable output levels on the graph.
c. Show the opportunity cost of one good in terms of another. 4M
d. What happens to the opportunity cost? (Increases, decreases or remain constant)
2. Law of demand a. 1
a. If the company decides to earn more profits and hence decide to increase the price of b. 1
their product. Use a numerical table of price and demand to explain.
c. 1
b. What effect this increase in prices will have on consumers demand? Is it called a
change in quantity demand or change in demand? Why?
3M
c. Draw and show this effect with the help of a demand curve.
3. Elasticity of demand a. 2
a. If your company’s product has many substitutes in the market, what happens to the b. 2
elasticity of your product? If your company’s product has few substitutes in the market, c. 1
what happens to the elasticity of your product? If your company’s product has no
substitutes in the market, what happens to the elasticity of your product.
b. Use a numerical data of price and demand to show the price elasticity of your good. 5M
c. Draw and show this effect of change in price on the demand for your company’s
product with the help of a demand curve.

4. Law of supply a. 1
a. Suppose your company produces a complementary good for its product? What b. 1
happens to the supply of one complementary good if the price of other complementary
c. 1
good falls.?
d. 1
b. Suppose your company produces a substitute good/service for its product? What
happens to the supply of one substitute good if the price of other substitute good
falls.?
4M
c. Use a numerical table of prices and supply to explain.
d. Is it called a change in supply or change in quantity supply? Why?

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5. Demand and supply equilibrium a. 1
a. Use a numerical table and show the demand and supply equilibrium for your product. b. 1
b. During long run what happened to the supply for your product? Draw the shift in the c. 1
supply curve and show.
c. How will this change affect the equilibrium price and quantity of the good? Give
3M
reasons for your answers.

6. Short run product and cost a. 1

a. Use a numerical table and show different worker and output levels (TP) and calculate b. 1
MP & AP in the short run. c. 1
b. Draw and show the behavior of TP, MP and AP curves. d. 1
c. Use a numerical table and show different output and cost (TC) in the short run and e. 1
calculate TFC, TVC, AC, AVC, AFC, MC.
d. Draw and show the behavior of TC, TFC, TVC in the short run in a separate graph.
Draw AC, AFC, AVC, MC in separate graph. Show the diminishing returns point in
the graph. 5M

7. Prefect Market a. 1
a. Is your company operating in a perfect market? If yes/no give reasons. b. 2
b. Use a numerical data to show your firms output and revenue in a perfect market in the c. 1
short run. Calculate TR, MR, AR, Total Profits, TC, MC, AVC, ATC. d. 1
c. Draw TC and TR curves in one graph. e. 1
d. Draw MC, ATC, AVC, AR, MR in one graph.
e. Show profit maximization, shutdown point and losses in the graph.

6M

END OF RUBRIC

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