1)Suppose the own price elasticity of demand for good X is -2, its income elasticity is 2

1)

Answer A) Own price elasticity= (%change in quantity demanded of X/ % change in price of X)

-2= ( % Change in quantity demanded of X/ % change in price of X)

With decrease in price of good x by 7% denominator becomes -7%

So,% change in quantity demanded= (-2)(-7)= 14%

Answer B) Cross price elasticity= (% Change in quantity demanded of X / % change in price of Y)

-3= (% Change in quantity demanded of X/ % change in price of Y)

With increase in price of Y by 8% denominator becomes 8%

% change in quantity demanded= (-3)(8)= (-24 %)

Answer C) Advertising elasticity= (% change in quantity demanded of X/ % change in advertising expenditure)

-3= (% change in quantity demanded of X/ % change in advertising expenditure)

With fall in advertising expenditure by 4% denominator becomes -4

So, % change in quantity demanded of X= (3)(-4)= -12%

Answer D) Income elasticity= (% change in quantity demanded of X/ % change in income)

3= ( % change in quantity demanded of X/ % change in income)

With rise in income by 5% denominator becomes 5

So, % Change in quantity demanded of X= (2)(5)= 10%

2)

Limiting factor is any factor that confines an organization or an association's exercises. At the end of the day, limiting factor is a factor which is restricted or insufficient give to the organization. Limiting factors in an association can be work hours, crude material, machine hours or space.

- For instance, when deals request abundance the profitability limit, the organization need more resources to create the items, the scant resource will be the factor that confines the organization's exercises. Thus, the scant resources ought to be recognized to guarantee organization has enough resources to create their items the same number of as their desire.

- By utilizing limiting factor, we can expand the benefit when gotten the best conceivable commitment to benefit each time.

- Techniques used to mitigate the risk from limiting factor in case of single factor like in the present case is as follows :

o At the point when single limiting factor are experienced, we need to utilize limiting factor investigation to help organizations to recognize the scant resources and expand benefit by utilizing the best blend of accessible resources.

o In limiting factor examination, we ought to distinguish the bottleneck resources first. Also, we ought to ascertain the commitment per unit for every item. Next, we can figure the commitment per unit of the bottleneck resource for every item after we get the commitment per unit of every item.

o After this, we can rank the items from the most elevated to the least in grouping dependent on commitment per unit of bottleneck resource.

o At long last, we can distribute the resources from the most elevated commitment per benefit to the least commitment per benefit by the positioning until the resources are spent.

o Thusly, we can got the best conceivable benefit when resources are restricted by single limiting factor.