Class 4

Quiz and Case Study

Ajay Massand
 Fill in the Blank
1) …………………..i.e. other things being equal, the demand for a
commodity is inversely related to its price.
2) Slice and Mazza are …………………. Goods.
3) There are certain commodities for which quantities demanded
decrease with an increase in money income. These goods are called
as …………….
4) According to law of demand, ………………………
5) ………………. is a tabular presentation showing different quantities of
a commodity that would be demanded at different prices.
6) The Graphical Representation of Demand Schedule is called a ………
 Fill in the Blank
7) Movement along the demand curve means ……………………. And shift
in the demand curve means …………….
8) Demand curve slops downwards because of the Law of …………….
9) doctrine of “Conspicuous Consumption” was found by ………..
10) Inferior goods like bajra, low quality rice and wheat are also called
as ……………….goods.
11) percentage change in quantity demanded with the percentage
change in the price is known as …………
 Fill in the Blank
12) The demand curve is a horizontal line and parallel to OX axis in the
case of ……………….
13) In the case of ……………… the quantity demanded would be 10 units,
irrespective of price changes from Rs. 10.00 to Rs. 2.00.
14) If there is a small change in price, then it leads to proportional
change in demand which is called as ………………..
15) Unitary elastic demand means …………………..
16) …………. Means 8 percent change in price leads to 4 percent change
in quantity demanded.
 Answers
1) Ceteris paribus
2) Substitute
3) inferior goods
4) other things being equal, if the price of a commodity falls, the
quantity demanded of it will rise and if the price of a commodity
rises, its quantity demanded will decline.
5) Demand Schedule
6) Demand Curve
 Answers
7) Change in the price leads to change in the quantity demanded, and
change in other things leads to change in the quantity demanded.
8) Diminishing marginal utility
9) Veblen
10) Giffen
11) Price elasticity of Demand
12) Perfectly elastic demand
13) Perfectly inelastic demand
 Answers
14) Relatively elastic demand
15) proportionate change in price which leads to equal proportional
change in demand.
16) Relatively inelastic demand
 MCQ
1. The elasticity of Gold is relatively
2. The elasticity of Pepsi is relatively
3. The elasticity of Electricity is relatively
4. if the demand for bread is elastic, the demand for jam will be…
5. The elasticity of T.V. is relatively
6. The elasticity of cigarette is relatively
7. the demand of persons in lower income groups is generally
8. The elasticity of newspaper is relatively
9. The elasticity of mobile phones is relatively
10. When the price level is high, the demand for commodities is …… and when the price
level is low, the demand is …...
a. More elastic b. less elastic c. none of them
 Answers
1. More elastic
2. More elastic
3. More elastic
4. More elastic
5. More elastic
6. less elastic
7. More elastic
8. less elastic
9. More elastic
10. More elastic, less elastic
 Fly the Financial Skies of “Elasticity Air”
• Understanding demand elasticities is worth billions of dollars each
year to U.S. airlines. Ideally, airlines would like to change a relatively
high price to business travellers, while charging leisure passengers a
low-enough price to fill up all their empty seats. That is a strategy for
raising revenues and maximizing profits.
• But if they charge low-elasticity business travellers one price and
high-elasticity leisure passengers a lower price, the airlines have a big
problem- keeping the two classes of passengers separate. How can
they stop the low-elasticity business travellers from buying up the
cheaper tickets meant for leisure travellers and not let high-elasticity
leisure flyers take up seats that business passengers would have been
willing to buy?
 Fly the Financial Skies of “Elasticity Air”
• The airlines have solved their problems by engaging in “price
discrimination” among their different customers in a way that exploits
different price elasticities. Price discrimination is the practice of charging
different prices for the same service to different customers. Airlines offer
discount fares for travellers who plan ahead and who tend to stay longer.
One way of separating the two groups is to offer discounted fares to people
who stay over a Saturday night- a rule that discourages business travellers
who want to get home for the weekend. Also, discounts are often
unavailable at the last minute because many business trips are unplanned
expeditions to handle an unforeseen crisis- another case of price-inelastic
demand. Airlines have devised extremely sophisticated computer programs
to manage their seat availability as a way of ensuring that their low-
elasticity passengers cannot benefit from discount fares.
• Source: Samuelson and Nordhaus, Page. No. 89
 Usual Questions
1) What is the problem in the case ?
2) How did the airline Industry have solved it?
3) Provide a suitable title to the case.
 Strategies based on elasticity of Demand
1) Different varieties of the product or models in the market by the
same company.
e.g. many varieties of Colgate toothpaste, series of car/bike models to
attract different set of consumers.
2) Private Bus operators
e.g. charge based on the upper sleeper, lower sleeper or sitting, A/c or
non A/c, Sleeper or Sitting, Pick up points etc.
3) Movie tickets
e.g. Weekends vs regular days, Morning show vs remaining shows.
Internal Marks for Managerial Economics

Internal Marks Allocation of Marks

Presentation 5
Case-Study 5
Assignment I 5
Assignment II 5
Class Test 10
Total 30
 Presentation Schedule
• Prepare a report on the given Topic/Article/Case Study (3000 to 4000
words) individually.
• Prepare a PPT presentation of it in a group.
• Show the PPT presentation to the Course Instructor and edit it.
• Present it on the given date (last class of the week).
• Submit your reports.
 Section E1
Sl No ID No Name of the student Current Trends in Economics
1 CMSBS/17-19/270 AAYUSH CHHABRIA GST
2 CMSBS/17-19/460 ABHILASH B R GST
3 CMSBS/17-19/333 AJAATH KANKAR P GST
4 CMSBS/17-19/163 AKSHAY C K GST
5 CMSBS/17-19/419 AMARNATH B K GST
6 CMSBS/17-19/113 ANKITA SHAH GST
7 CMSBS/17-19/415 ASHISH NARAYANA DASH Impact of Demonetization
8 CMSBS/17-19/331 ASHISH ROHAN Impact of Demonetization
9 CMSBS/17-19/182 BALAJI Impact of Demonetization
10 CMSBS/17-19/118 BHUVAN KUMAR Impact of Demonetization
11 CMSBS/17-19/376 BONUGUNTA SRAVAN Impact of Demonetization
12 CMSBS/17-19/112 DASHAMI K M Impact of Demonetization
13 CMSBS/17-19/180 DHRITHI C A RBI
14 CMSBS/17-19/374 DIVYA K SHAH RBI
15 CMSBS/17-19/27 GEO PAUL JOSE RBI
16 CMSBS/17-19/84 GIRISH N R RBI
17 CMSBS/17-19/395 HARSHA S RBI
18 CMSBS/17-19/429 HARSHAVARDHANA K RBI
 Section B1
Sl No ID No Name of the student Current Trends in Economics
1 CMSBS/17-19/124 AATHISH KANNANTH M BSE SENSEX and NSE Nifty
2 CMSBS/17-19/52 ABDULLAH MUJAHID R K BSE SENSEX and NSE Nifty
3 CMSBS/17-19/442 ABHISHEK GOEL BSE SENSEX and NSE Nifty
4 CMSBS/17-19/179 ABHISHEK PAINKARA BSE SENSEX and NSE Nifty
5 CMSBS/17-19/449 ADITYA DAYASAGAR KURWATTI BSE SENSEX and NSE Nifty
6 CMSBS/17-19/317 AKANKSHA PRASAD BSE SENSEX and NSE Nifty
7 CMSBS/17-19/322 AMBATI MOHAN RAJ Indian Banking Sector
8 CMSBS/17-19/371 AMMAN PRADHAN Indian Banking Sector
9 CMSBS/17-19/210 ANUBHAV AGARWAL Indian Banking Sector
10 CMSBS/17-19/30 ANUSHKA JAIN Indian Banking Sector
11 CMSBS/17-19/155 ARFI AZAM Indian Banking Sector
12 CMSBS/17-19/285 ARYA T R Indian Banking Sector
13 CMSBS/17-19/458 ATHIRA K SEBI
14 CMSBS/17-19/59 BALA MURUGAN G SEBI
15 CMSBS/17-19/183 BIBI MARIAM SHINGATI SEBI
16 CMSBS/17-19/94 BOLE SRI LEKHA SEBI
17 CMSBS/17-19/29 CHANDRA PRAKASH C SEBI
18 CMSBS/17-19/236 CHATTUR AFZAL SEBI
Section G1