Description
1. “Demand forecasting plays a vital role and enables organisations to arrange for the required input as per the predicted demand, without any wastage of material and time”
Substantiate your view on demand forecasting and discuss the various factors influencing demand forecasting. (10 Marks)
2. Define the term “Elasticity of demand.” Discuss different types of elasticity of demand. Also, explain why this concept should be of interest to anyone in business who has a choice to determine the price at which to sell their products. (10 Marks)
3 A) “The root of the economic problem is the scarcity of resources while our wants are infinite”. Elaborate the given statement explaining the three types of economic problems faced by an economy in achieving in production and distribution. (5 Marks)
Q3b) Complete the hypothetical table – compute and show steps on Average Product and Marginal product. (5 Marks)
| Quantity | Total Product | Average Product | Marginal product |
| 1 | 10 | ||
| 2 | 30 | ||
| 3 | 48 | ||
| 4 | 56 | ||
| 5 | 56 | ||
| 6 | 52 |
