College of Administrative and Financial Sciences     Assignment 1 Principles of Microeconomics (ECON101) Deadline: End of Week 5 (10/07/2021 @ 23:59)         Course Name: Principles of Microeconomics Student’s Name: Course Code: ECON101 Student’s ID Number: Semester: Summer CRN: Academic Year: 1441/1442 H, Summer     For Instructor’s Use only Instructor’s Name: Students’ Grade: /5 Level of Marks: High/Middle/Low       Instructions – PLEASE READ THEM CAREFULLY   · This assignment is an individual assignment

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College of Administrative and Financial Sciences

 

 

Assignment 1

Principles of Microeconomics (ECON101)

Deadline: End of Week 5 (10/07/2021 @ 23:59)

 

 

 

 

Course Name: Principles of Microeconomics	Student’s Name:
Course Code: ECON101	Student’s ID Number:
Semester: Summer	CRN:
Academic Year: 1441/1442 H, Summer

 

 

For Instructor’s Use only

Instructor’s Name:
Students’ Grade: /5	Level of Marks: High/Middle/Low

 

 

 

Instructions – PLEASE READ THEM CAREFULLY

 

· This assignment is an individual assignment.

· The Assignment must be submitted only in WORD format via allocated folder on Blackboard.

· Assignments submitted through email will not be accepted.

· Students are advised to make their work clear and well presented. This also includes filling your information on the cover page.

· Students must mention question number clearly in their answer.

· Late submitted assignments will NOT be entertained.

· Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.

· All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).

Submissions without this cover page will NOT be accepted.

 

Assignment Questions:

 

Question- 1 Marks-3

 

Zaid can produce either tables or chairs. Zaid can work up to 10 hours a day. His production possibilities are given in the table below:

 

Tables	Chairs
0	100
10	80
20	60
30	40
40	20
50	0

 

 

1) Construct the production possibilities frontier (PPF) for Zaid. Put tables on the Horizontal axis and chairs on the vertical axis.

2) What is Zaid’s opportunity cost of producing one additional table?

3) Currently Zaid is producing 20 tables and 40 chairs.

a) Is this allocation of resources efficient? Why?

b) Show this allocation on the graph and advise Zaid how he can be more efficient.

 

Question- 2 Marks-2

 

Suppose the market for Computer is given by the following equations for supply and demand:

 

Qd= 3300−2P Qs= 500+8P

 

1) Calculate the equilibrium price and quantity.

2) Sketch the supply and demand curves on a graph indicating the equilibrium quantity and price.