1. What is the scope of industrial economics? Also discuss its importance.

2. What role industrial economics plays in economic development of a country?

3. (a)  At what price and output level the market will be in equilibrium?

Q^d  = 100 - 6P

Q^s   = 28 +  3P

Where Q^d is quantity demanded, Q^s is quantity supplied while P is the price of good.

(b) At what price and output level the market will be in equilibrium?

Q^d  = 100 - 2P

Q^s  = -20 + 1P

Where Q^d is quantity demanded, Q^s is quantity supplied while P is the price of good.

4. Define Consumer Surplus and Producer Surplus? Use neat diagrams to explain Consumer and Producer Surplus?

5. Define the Law of Supply? Keeping in view the Law of Supply, how the following factors will shift the supply curve? (Each answer must be supported by a neat diagram):

a) If number of producers increases in the market;

b) If there is an advancement in electronics technology;

c) If the prices of raw material increases in automotive industry;

d) If there is an expectation of increase in oil prices during next month.

6. Explain the Law of Demand. What are their assumptions? What are demand curve shifters and what causes them to shift?

7. What is market equilibrium? What might keep the market from moving all the way to that equilibrium point?

8. "Price control can be more effective in the short run than the long run". Explain. How could price controls affect a firm's incentive to innovate?

9. What are various types of elasticity of demand? Explain with examples.

10. Suppose that a producer raises the price of a good from $8 to $15, and the quantity sold drops from 250 to 40 units. Is the demand for the good is elastic or inelastic?

11. Define and explain perfect competition, monopoly and oligopoly. Why firms do price discrimination?