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OUM BUSINESS SCHOOL

ASSIGNMENT SUBMISSION AND ASSESSMENT
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BMME5103
MANAGERIAL ECONOMICS
JANUARY 2015
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INSTRUCTIONS TO STUDENTS

1. This assignment contains question that is set in English.

2. Answer in English only.

3. Your assignment should be typed using 12 point Times New Roman font and 1.5 line spacing.

4. You must submit your hardcopy assignment to your Fasilitator and ON-LINE via the MyVLE. Refer to the portal for instructions on the procedures to submit your assignment on-line. You are advised to keep a copy of your submitted assignment and proof of the submission for personal reference. Your assignment must be submitted on 21st – 29th March 2015.

5. Your assignment should be prepared individually. You should not copy another person’s assignment. You should also not plagiarise another person’s work as your own.

EVALUATION
This assignment accounts for 60% of the total marks for the course.

ASSIGNMENT QUESTION

PART 1

PURPOSE:
The purpose of PART 1 of this assignment is to enable the students to understand the fundamental economic concept and to apply his/her knowledge on factors affecting demand; in particular when more than one factors change simultaneously.

REQUIREMENT:

1. The concept of a marginal use value that declines as the rate of consumption increases leads to a powerful insight about consumer behavior. The question was posed: “Why should something as essential to human life as water sell for low market prices while something as frivolous as cosmetic diamonds sell for high market prices?” What is your response?

(Sub-Total: 10 Marks)

2. When two or more of the factors that affect demand change simultaneously, one is