NMIMS Solved Assignment Micro Economics & Macro Economics Dec 2025:Â [Unique]@650
NMIMS Solved Assignment Micro Economics & Macro Economics Dec 2025
Assignment Marks: 20
Instructions
PLEASE NOTE: This assignment is application based, you have to apply what you have
learnt in this subject into real life scenario. You will find most of the information through
internet search and the remaining from your common sense. None of the answers appear
directly in the textbook chapters but are based on the content in the chapter
NMIMS Centre for Distance and Online Education (NCDOE)
Course: Micro Economics & Macro Economics
Internal Assignment Applicable for Dec 2025 Examination
l All Questions carry equal marks
l All Questions are compulsory
l All answers to be explained in not more than 1000 words for question Q1 and for question Q2(A)
and Q2(B) in not more than 500 words for each subsection. Use relevant examples, illustrations as
far as possible
l All answers to be written individually. Discussion and group work is not advisable.
l Students are free to refer to any books/reference material/website/internet for attempting their
assignments, but are not allowed to copy the matter as it is from the source of reference.
l Students should write the assignment in their own words. Copying of assignments from other
students is not allowed
Q1 Rohan owns a local organic farming business that supplies fresh fruits and vegetables
to supermarkets and online grocery platforms. Recently, he has seen an increase in
demand due to rising consumer preference for organic produce. However, he is
struggling to increase supply due to challenges such as unpredictable weather
conditions, high labor costs, rising transportation expenses, and government farming
regulations. As an agricultural consultant, analyze the concept of supply and its
determining factors to help Rohan expand his business.
(10 Marks)
Q2 (A) Aarav owns a chain of fast-food restaurants that specializes in gourmet burgers.
Recently, he noticed that when he increased the price of his signature burger by 10%,
sales dropped significantly. However, when he increased the price of soft drinks by
15%, there was little to no impact on sales. Aarav is now trying to understand how
price changes affect demand for different products in his restaurant and how he can
use this information to make better pricing decisions. As a business consultant,
analyze the concept of price elasticity of demand and recommend pricing strategies
that Aarav can use to maximize revenue without losing customers.
(5 Marks)
Q2 (B) Neha, a young professional, recently received a promotion with a significant salary
hike. Excited about her increased income, she decides to upgrade her lifestyle by
purchasing premium organic food products, high-end fashion brands, and a gym
membership. However, she also notices that some of her colleagues, despite their
higher incomes, continue buying budget-friendly brands and prefer saving rather than
increasing their spending. As an economist, analyze the impact of the income effect
on Neha’s consumption choices. In your response explain the concept of the income
effect and how changes in income influence consumer demand for normal goods,
inferior goods, and luxury goods.
(5 Marks)
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