1.From the case study, identify any two examples of scarce resources. (3 marks)

Example 1:

Example 2:

2.Identifytwodeterminants of demand on frozen bakery products in this case study and state whether they are shifting demand left or right. (2 determinants). Show the effect on the frozen bakery market using a labelled graph. (2.5 marks)

Note: students can draw the graph on paper then take a picture and paste it in the space below.

Determinant 1:

Demand curve shifts right/left:

Draw the graph:

Determinant 2:

Demand curve shifts right/left:

Draw the graph:

3.European frozen bread producers have offered discounts of up to 9%, which resulted in an increase in their sales from 74,500 units to 91,463 units in the month of April. Calculate PED, state whether it is elastic or inelastic, and, state what manufacturers and dealers should do to maximize revenue.Show your calculations(1.25 marks + 2.5 marks)

PED=

PED is Elastic/unit elastic/inelastic:

Actions of manufacturers do to maximize revenue:

4.Since many GCC countries announced a 13% pay rise in salaries for government employees, resulting in an increase in frozen bread sales. Calculate IED and indicate if frozen bread is a normal or inferior good?Show your calculations(2.5 marks)

IED:

Frozen bread is a normal/inferior good:

5.Given the information in the case study, calculate the cross price elasticity of demand between frozen bread and oven bags. Explain if the two products are complements or substitutes and why.Show your calculations(1.25 marks)

CPED:

The two products are complements/substitutes:

Explain why they are complements/substitutes:

6.

In your opinion, what would frozen bread producers wish to happen to the price of raw materials and ingredients they need in order to produce frozen bread and why.(0.5 marks)

7.Explain one reasons in your opinion why price elasticity of demand for frozen bread is elastic. (0.5 mark)

8.Technological progress has most recently allowed producers of frozen bread to provide their products at a lower price to end consumers. Does this affect the demand or the supply frozen bread market in the region?Explain your answer with the use of a labelled graph.(2 marks)

Note: students can draw the graph on paper then take a picture and paste it in the space below.

Technological progress affects demand/supply:

Draw graph:

9.Considering the bad weather American producers are facing;andif American bread products and European bread products are to be substitutes, considering European producers offered discounts, what do you expect to happen to price and quantity of sales ofAmerican frozen bread producers(Identifytwoshifts using a labelled graph) (1.5 marks)

Note: students can draw the graph on paper then take a picture and paste it in the space below.

Shift 1:

Shift 2:

Draw the two shifts happening on ONE graph.

10.The following information is available for frozen bread producers. Costs are all in AED. (7.5 marks)

Quantity

Variable Costs

Fixed Costs

Total Costs

0

400,000

10,000

750,000

20,000

1,350,000

30,000

1,650,000

a)

What is the fixed cost for frozen bakery producers? (1.5 marks)

b)What is the variable cost for frozen bakery producers when Quantity is 0?(1.5 marks)

c)What is the average total cost when quantity is 20,000?(0.5 mark)

d)

What is total cost when quantity is 10,000? (0.5 mark)

e)

What is average variable cost when quantity is 30,000 (0.5 mark)

f)

What is average fixed cost when quantity is 10,000? (0.5 mark)

g)Explain the relationship between quantity and average fixed cost. (0.5 mark)

h)What is the marginal cost when quantity is 20,000 units? (0.5 mark)

i)If frozen bakery producers sells frozen bread to UAE dealers for AED70 per unit, what is total profit when quantity is 20,000 units?(1.5 mark)

1.From the case study, identify any two examples of scarce resources. (3 marks)

Example 1:

Example 2:

2.Identifytwodeterminants of demand on frozen bakery products in this case study and state whether they are shifting demand left or right. (2 determinants). Show the effect on the frozen bakery market using a labelled graph. (2.5 marks)

Note: students can draw the graph on paper then take a picture and paste it in the space below.

Determinant 1:

Demand curve shifts right/left:

Draw the graph:

Determinant 2:

Demand curve shifts right/left:

Draw the graph:

3.European frozen bread producers have offered discounts of up to 9%, which resulted in an increase in their sales from 74,500 units to 91,463 units in the month of April. Calculate PED, state whether it is elastic or inelastic, and, state what manufacturers and dealers should do to maximize revenue.Show your calculations(1.25 marks + 2.5 marks)

PED=

PED is Elastic/unit elastic/inelastic:

Actions of manufacturers do to maximize revenue:

4.Since many GCC countries announced a 13% pay rise in salaries for government employees, resulting in an increase in frozen bread sales. Calculate IED and indicate if frozen bread is a normal or inferior good?Show your calculations(2.5 marks)

IED:

Frozen bread is a normal/inferior good:

5.Given the information in the case study, calculate the cross price elasticity of demand between frozen bread and oven bags. Explain if the two products are complements or substitutes and why.Show your calculations(1.25 marks)

CPED:

The two products are complements/substitutes:

Explain why they are complements/substitutes:

6.

In your opinion, what would frozen bread producers wish to happen to the price of raw materials and ingredients they need in order to produce frozen bread and why.(0.5 marks)

7.Explain one reasons in your opinion why price elasticity of demand for frozen bread is elastic. (0.5 mark)

8.Technological progress has most recently allowed producers of frozen bread to provide their products at a lower price to end consumers. Does this affect the demand or the supply frozen bread market in the region?Explain your answer with the use of a labelled graph.(2 marks)

Note: students can draw the graph on paper then take a picture and paste it in the space below.

Technological progress affects demand/supply:

Draw graph:

9.Considering the bad weather American producers are facing;andif American bread products and European bread products are to be substitutes, considering European producers offered discounts, what do you expect to happen to price and quantity of sales ofAmerican frozen bread producers(Identifytwoshifts using a labelled graph) (1.5 marks)

Note: students can draw the graph on paper then take a picture and paste it in the space below.

Shift 1:

Shift 2:

Draw the two shifts happening on ONE graph.

10.The following information is available for frozen bread producers. Costs are all in AED. (7.5 marks)

Quantity

Variable Costs

Fixed Costs

Total Costs

0

400,000

10,000

750,000

20,000

1,350,000

30,000

1,650,000

a)

What is the fixed cost for frozen bakery producers? (1.5 marks)

b)What is the variable cost for frozen bakery producers when Quantity is 0?(1.5 marks)

c)What is the average total cost when quantity is 20,000?(0.5 mark)

d)

What is total cost when quantity is 10,000? (0.5 mark)

e)

What is average variable cost when quantity is 30,000 (0.5 mark)

f)

What is average fixed cost when quantity is 10,000? (0.5 mark)

g)Explain the relationship between quantity and average fixed cost. (0.5 mark)

h)What is the marginal cost when quantity is 20,000 units? (0.5 mark)

i)If frozen bakery producers sells frozen bread to UAE dealers for AED70 per unit, what is total profit when quantity is 20,000 units?(1.5 mark)

END OF CASE ANALYSIS

END OF CASE ANALYSIS