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A Level Economics:

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Dear its really a very tricky question. most of the candidates were unable to understand it. Let see how to solve it.
The answer for this question is 1000 tonnes. But how? see.
1. Initiallt income at equilibrium is 10,000. i.e. Price multiply by quantity. price is 5 and quantity is 2000.
2. This income can be attained again when price is 2 and quantity is 5000.
3. At price 2 there is surplus or excess supply equal to 1000 which should be demanded to meet the requirment of same income.
4. You may be confused about 1000. is it so?
5. if yes then see the graph at price 2 demand is 4000 and supply is 5000. Supply is greater than demand which is known as surplus.

On x axis quantity is given in '000' which means thousands.
Hope the question is answered.
Relpy if u got it also reply if u could not so that i may explain it other way.
Sir I have also your books. All these points are also explained there in detail. Thanks for such a wonderful work sir.
 
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Sir can you please explain me how exchange rate is determined in freely floating exchange rate system? How is it different from Fixed exchange rate system?
 
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Hi, I'm having trouble with this question. Could you help me? Much thanks.

oct/nov 2012 qp 11 Question 28 Economics
 
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Hi, I'm having trouble with this question. Could you help me? Much thanks.

oct/nov 2012 qp 11 Question 28 Economics
Countries Weights Index WI
Nigaria 80 110 8800
Malysia 20 150 3000
EW = 100 EWI= 11800
WPI = EWI/EW = 11800/100 = 118
therefore value of weighted index is 118.
Hope you can understand the calculation above. if there is any difficulty in understanding then reply to this answer.
 
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Hi, I'm having trouble with this question. Could you help me? Much thanks.

oct/nov 2012 qp 11 Question 28 Economics
I wud suggest you to see the following link to see the exact calculation because in xpc answers is little distorted.
 
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Sir can you please explain me how exchange rate is determined in freely floating exchange rate system? How is it different from Fixed exchange rate system?
Define freely floating exchange rate.
show it on demand and supply equilibrium graph.
then show shifts in demand and supply and their affects on exchange rate.
define fixed exchange rate
use concept of foreign currency reserves.
then evaluated the forces of demand and supply and government and centrl bank's role.
 
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Hi sir,

I can't find the solution to this question... :(
Could you help me?

May/June Paper 12 Question 8
 
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