Q.No.1: Summarize the ten principles of economics explained by author Gregory

mankiw. Give examples of each in Pakistan context.

Q.No.2: Make up an example of a monthly demand schedule for pizza, and graph the

implied demand curve. Give an example of something that would shift this demand

curve, and briefly explain your reasoning. Would a change in the price of pizza shift

this demand curve?

Q.No.3: On the appropriate diagram, show what happens to the market for pizza if

the price of tomatoes rises. Similarly on a separate diagram, show what happens to

the market for pizza if the price of hamburgers falls.

Q.No.4: If the elasticity is greater than 1, is demand elastic or inelastic? If the

elasticity equals zero, is demand perfectly elastic or perfectly inelastic?

Q.No.5: Define economies of scale and explain why they might arise. Define

diseconomies of scale and explain why they might arise.

Q.No.6: Draw some indifference curves for pizza and Pepsi. Explain the four

properties of these indifference curves.