ASSIGNMENT

Date Assigned: 24th April 2016

Subject: Managerial Economics

SUBJECT CODE

: MEC 605

SUBJECT TITLE

: Managerial Economics

LEVEL

: Masters

STUDENTS NAME :
MATRIC NO.

PROGRAMME

: MBA

FACILITATOR

: Dr. S.M.A.K. Samarakoon

LEARNING CENTRE : AeU Centre for Management & Technology (Private) Limited
INSTRUCTIONS TO STUDENTS
1) This assignment consists of TWO (2) Parts. Answer should cover BOTH parts.
2) Plagiarism in all forms is forbidden. Students who submit plagiarised assignment will be
penalised.
3) References MUST be included and taken from reliable sources. Please use the Harvard
Referencing System and cite your work appropriately.
4)This assignment carries a 60% weightage toward final grade.
5) The submission date for this assignment is 22nd May 2016. Please submit your assignment to
AeU Campus (Private) Limited.
Date of Issue

: 24th April 2016

DECLARATION BY STUDENT
I certify that this assignment is my own work and is in my own words. All sources have been
acknowledged and the content has not been previously submitted for assessment to Asia e
University or elsewhere. I also confirm that I have kept a copy of this assignment.

Signed:

Master of Business Administration

Managerial Economics Individual Assignment
Part 1 - Task One
By taking an organisation of your choice (current work place or any other) you need to apply the
knowledge on demand & supply theories to the real world situation.
For this purpose you need to select a product or service offered by the chosen organisation. If
there are many products in the organization chosen you can select one product for the analysis.
Write a report on the demand behaviour of the selected product/service inclusive of the following
aspects.
1.
2.
3.
4.
5.

Introduction to the chosen organisation and product/service.

The relationship between price and the demand (sales quantity).
Price elasticity of demand.
How the price elasticity can be used in pricing decisions.
Analysis of income elasticity of demand of the product by relating the sales data with per
income over the period.

Part 2 - Task two

Assume, you are working in the Sarasavi Publishing (Private) Limited as the General Manager. In
2016, the Company has purchased copyrights for printing and selling recommended two textbooks
for Managerial Economics and Macroeconomics which was written by famous author Professor
Sunil Perera. Both books are recommended by different local and foreign universities for their
postgraduate programs as recommended readings. Therefore company expects massive demand
for their new Economics books. Company intends to print and have for sale new text books within
a short period. Company expects to evaluate competitive prices which is suitable for different
counties.
a. Explain different types of costs that should be considered in pricing the books?
b. Select an appropriate pricing policy that can be used for pricing the new economics books and
justify as to why you made that selection?
c. i. Price discrimination is an important tool for upgrading sales. Do you agree? Explain your
answer.
ii. Can price discrimination be used for pricing new economics book? Explain your answer.