ECO 101: PRINCIPLES OF MICROECONOMICS
ASSIGNMENT
The assignment in the current lesson is optional. It counts over and above the Mid-Term
Examination and the Final Examination and its purpose is to help students improve their
grades. The maximum grade that an assignment can receive is 20/100 (20 out of hundred).
The deadline for the submission of this assignment is the day of the final examination.
Students must hand the assignments in printed form at the time of the examination stating
clearly their name and registration number on the first page.
Answer the following questions in no more than 4 pages (maximum 1500
words) drawing graphs and justifying your answers.
1) Characterise the following products and services with respect to their
degree of elasticity and compare them. Which one is more elastic and
why? Justify in each case your answer in 100 words.
a)
b)
c)
d)
e)
Nokia mobile phones and mobile phones in general
Heating oil in the next month and heating oil in five years
Bread and pork meat
Painkillers in general and Panadol painkillers
Diamonds and jewellery
2) Draw the demand curve for the following goods and services. Place
emphasis on the slope of the curve and explain your rationale for the
shape of each graph.
a)
b)
c)
d)
e)
f)
Beef
Bananas
Coca Cola
Soft drinks
Milk
Gucci bags