Using Arc elasticity method

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• Business Economics
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• Business Economics
• 1. The manager of a company was analyzing the
  trend of the products of its company (Commodity
  Y) getting replaced by another substitute product
  available in the market which gives the same
  level of satisfaction to the consumers. Calculate
  the rate of Marginal Rate of Substitution and
  analyze the result.
• Combination Units of Commodity Y Units of
  Commodity X Total Utility
• a.40 10 U
• b.25 14 U
• C.17 19 U
• d.10 27 U
• e. 7 38 U

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• 2. Neha has just completed her MBA and joined a
  startup company. The company was planning to
  launch a new product in the market so the
  management wanted to understand the different
  factors that can impact the demand and supply of
  their products in the market. Help Neha to
  prepare a report on the factors impacting demand
  and supply of products in the market. 
• 3. Alpha Ltd market share was declining due to
  high competition in the market so it decided to
  enter a new segment. It wanted to determine the
  relationship between change in the quantity
  demanded of the product due to change in the
  price of the product in the market. Assume that
  at the price of 100, the demand for the product
  is 400 units. If the price of the product
  increases to 120, the demand decreases to 250
  units. Calculate the price elasticity

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• a) Using Arc elasticity method 
• b) Using Percentage method

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