Section A (20 Marks)
Write short notes on any four of the following 1. Marginal Utility

2. Income Elasticity of Demand

3. Role of Managerial Economics

4. Trend Projection Method

5. Economies of Scale

Section B (30 marks)

(Attempt any three) 1. Discuss the approaches to consumer demand analysis.

2. Describe the various methods for surveying the consumer.

3. Make a list of differences in complimentary goods and substitutes goods.

4. “Elasticity of supply is the degree of responsiveness of quantity supplied to a given change in price”. Explain this definition.

Section C (50 marks)

(Attempt all questions. Every question carries 10 marks)

Read the case “Apple Inc.” and answer the following questions:

Case Study: Apple Inc.

In 2010, Apple had to delay the international launch of its iPad computer for a month, blaming ‘surprisingly strong US demand’ that was higher than the company’s ability to produce them. More than 500,000 were delivered to retailers and customers in its first week on sale, but these soon sold out. The company had planned to launch the touch-screen device internationally at the end of April, after beginning sales in the USA on 3 April. But the strong demand meant that it could not hit that date.
The company said in a statement: ‘We will announce international pricing and begin taking online preorders on Monday, May 10. We know that many international customers waiting to buy an iPad will be disappointed by this news, but we hope they will be pleased to learn the reason—the iPad is a runaway success in the US thus far.’
The news was a disappointment to thousands of people outside the USA who wanted to get the machines as soon as possible.
The iPad is a touch-screen computer with a 9.7-inch screen, which uses the same operating system as Apple’s iPhone and iPod Touch. It