Microeconomics Midterm Summer 2025 Question Paper

Semester: Summer-2025 Examination: Midterm Course Code: 0311-212 Course Title: Microeconomics Teachers' Initial: DAMI, DSMR, SKH, MSB 1. 'Human wants are unlimited but resources are limited' - Explain with some examples how an economy is meeting this gap by alternative uses of scarce resources. 5 (CLO 1, Level 2] 2. Suppose a hypothetical country Fairyland' can produce following combinations of coffee and tea using all its searce resources efficiently. The figures are in units. Coffee Tea A B 100 0 C D 80 60 0 25 45 105 a. Construct a well-labeled PPF diagram for 'Fairyland", with coffee on the X-axis, and tea on the Y-axis showing production combinations A, B, C, D on PPF. 2 (CLO 2, Level 3] b. What would happen if the country moves from B to C without changing existing technology? If the country adopts a new farming technology that doubles coffee production without affecting the production of tea then how this change would be reflected on the Production Possibility Frontier (PPF)? 3 [CLO 2, Level 3] 3. a. Identify the reasons for movement along the demand curve and the key factors that cause a shift in the demand curve? 3 [CLO 2, Level 3] b. Due to a drought, the production of wheat falls- Develop the effect on the supply curve, and predict changes in the wheat market. 2 [CLO 2, Level 3] Page 1 of 2 C S CamScanner 4. The market demand and supply functions for cooking oil in Bangladesh are estimated as follows 10 [CLO 3, Level 4] D = 1320 - 6P. S* . 480 + 3P a. Analyze the situation with the equilibrium price and equilibrium quantity of cooking oil with a clearly labeled diagram. b. If the price of Oil is BDT 300.00 what happens in this market for business people? c. If the price of oil is BDT 100.00 what happens in this market for consumers? OR The table sets out the demand and supply schedule for cooking oil in Bangladesh. Identify the following situations Price (dollar per unit) 100 150 Quantity demanded 200 200 250 300 160 120 100 80 Quantity supplied 90 100 120 210 220 a. Analyze the situation with equilibrium price and equilibrium quantity of cooking oil? b. If the price of Oil is BDT 300.00 what happens in this market for business People? c. If the price of oil is BDT 100.00 what happens in this market for consumers? Page 2 of 2 CamScanner