Micro Economics and Macro Economics June 2026 Solved Assignments

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NMIMS

Micro Economics and Macro Economics

APPLICABLE FOR SEM 2 (JUNE 2026 EXAMINATION)

Q1. A premium electric scooter company, EcoRide Motors, has been operating successfully in a metropolitan city. Over the last six months, the company has observed a significant increase in demand for its scooters, even though the price of the scooter has remained unchanged. The following developments have taken place in the market: The government has announced higher fuel prices and reduced subsidies on petrol vehicles. Consumer income levels have increased due to salary hikes in the IT sector. The government has introduced tax incentives for electric vehicle buyers. There has been growing environmental awareness among consumers. The price of public transport passes has increased. A reputed automobile brand has launched a cheaper substitute electric scooter. Despite no change in EcoRide’s product price, sales volume has increased noticeably. Using demand theory, evaluate how each of the above factors would individually affect the demand for EcoRide scooters. Clearly identify which factors would cause a rightward shift and which would cause a leftward shift of the demand curve, and distinguish clearly between a movement along the demand curve and a shift of the demand curve in this context. (10 Marks)

Ans 1.

Introduction

A systematic framework for comprehending why purchase volumes fluctuate in response to different market pressures is provided by demand theory. This theory makes a crucial difference between changes in the demand curve and movements along it. Only when a product’s price fluctuates and customers purchase more or less of it does it move along the curve. On the other hand, when non-price factors change, the amount requested at every potential price point changes. Since EcoRide’s pricing hasn’t changed 

Q2 (A). A domestic airline reduces the ticket price for a popular route from Rs. 5,000 to Rs. 4,000. As a result, the number of passengers increases from 10,000 per month to 13,000 per month. The management wants to understand whether the price cut improved total revenue and whether similar pricing strategies should be adopted on other routes. Compute the price elasticity of demand. Based on your result determine whether demand is elastic, inelastic, or unitary elastic. (5 Marks)

Ans 2(A).

Introduction 

In the airline sector, pricing choices have a big impact on revenue, and a good business plan depends on knowing how customers react to price adjustments. Price elasticity of demand gives management a mathematical basis for assessing whether a price cut will increase or decrease overall revenue by measuring how responsive quantity sought is to a change in price. The shift in passenger traffic that occurs when a domestic airline lowers ticket rates on a well-traveled route only partially explains the situation.  

Concept and 

Q2 (B). A multinational telecom company is entering a new international market where there is no historical sales data for its smartphones. Due to high uncertainty regarding consumer preferences, pricing sensitivity, and competitive response, the marketing director proposes using the Delphi technique to forecast initial demand for inventory planning and promotional campaigns. Evaluate the suitability of the Delphi technique in this context and explain how this technique works. Illustrate with a relevant example of how telecom experts’ opinions could be used to estimate demand. (5 Marks)

Ans 2(B).

Introduction and Theory

A significant forecasting issue arises when one enters a new overseas market without prior sales data. In order to forecast future results, traditional quantitative techniques like time series analysis, regression modeling, and moving averages essentially rely on the presence of historical data patterns. Organizations must use qualitative forecasting techniques, which derive structured insight from human knowledge and well-informed judgment, in the absence of such data. Among these methods, the Delphi procedure is one of the most reputable and rigorous. The marketing director’s suggestion to