Economics, Accounting & Business: Post your doubts here!

[youzair]

Thank you.
Can you please eplain trade diversion ??

i can provide you notes...alryt?

 

[shanky631]

In brief, Trade diversion is a drawback of economic integration as it means that member countries of a particular trading bloc are bound by some rules and regulations (tariffs), and aren't able to trade freely with countries outside the trading bloc even if they are more efficient and cheaper to trade with.

 

[youzair]

Thank you.
Can you please eplain trade diversion ??

Detail Notes on

TRADE CREATION​

&​

TRADE DIVERSION​

 

[Esme]

Alryt. i'l go through them.
grateful for your help.

 

[Esme]

Detail Notes on

TRADE CREATION​

&​

TRADE DIVERSION​

can you also explain what a rectangular hyperbola is with the help of a diagram ??

 

[youzair]

can you also explain what a rectangular hyperbola is with the help of a diagram ??

Yeah sure why not but not now as em online from phone.
Basically rectunglar hyper bola is out of our course but its use to show UNITARY DEMAND curve..

 

[Esme]

yes it is something related to unitary elasticity. Actually it was mentioned in one of the ers. and our teacher mentioned it too but i dint get the whole concept.
sure wenever you get time den gimme notes for this as well.

 

[Mohammed Hassan]

Hi, may someone please explain the difference between special donations and general donations? and how are they treated in the final accounts? thnx and the subject is accounts....

 

[00mfr]

Thank you.
Can you please eplain trade diversion ??

it where trade is diverted from a more efficient exporter towards a less efficient one by the formation of a free trade agreement or a customs union.
It also increases the cost as you now have to buy from a less efficient producer/exporter

 

[00mfr]

can you also explain what a rectangular hyperbola is with the help of a diagram ??

i hope ur not talking about AS level

 

[Esme]

i hope ur not talking about AS level

i am talking abt AS

 

[00mfr]

i am talking abt AS

*facepalm*

 

[Esme]

i understood that the elasticity will be different because its a linear demand curve. but even option 'b' can be true . why is dat not the answer ?

 

[00mfr]

View attachment 9095
i understood that the elasticity will be different because its a linear demand curve. but even option 'b' can be true . why is dat not the answer ?

B is not the answer because if for example a consumer spends $10 on something,
then the price reduces of the commodity and demand rises and this could mean that a consumer demands more of that product but bcuz the price is falling, the expenditure might not increase.
also we dont noe how much is the rise in demand and the fall in price, its possible for consumer expenditure to fall if demand is increasd at a slower rate than the rate of fall in prices.
i know it sounds confusing but i tried :/

 

[student92]

rectangular hyperbola, its there in our syllabus, i have seen mcq s for it
it is the curve for unitary price elastic demand,
any combination of the price and quantity will give the same area under the curve, which is total expenditure from a consumer point of view, and from producer point of view it is total revenue,
thats why, when ped is 1, price changes will bring an equally popotionate change in quantity

when you get this concept,option b in the next mcq, will seem to be wrong for you, as consumer expenditure depends not only on price , but on the price elasticity also,
b is true for price elastic demand only, not for inelastic demand
hope this helps

 

[student92]

http://finance.yahoo.com/news/sony-reports-record-annual-loss-061732709.html
nice article, can be used for real life reference in exams for eco and bus st

 

[student92]

Hi, may someone please explain the difference between special donations and general donations? and how are they treated in the final accounts? thnx and the subject is accounts....

which paper is this
i too have problem in handling donations

 

[Mohammed Hassan]

which paper is this
i too have problem in handling donations

its not a paper, its just a general question :S
R u taking AS accounting?

 

[student92]

yes

 

[student92]

when you come across any question with doonations, please share it with me, we could try to solve our problem