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A Level Economics:

Qamar Baloch

Qamar Baloch

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aroojshahzad said:
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Economics (9708)/9708_s12_qp_12.pdf

can anyone answer Q17 from the mcq paper?
Click to expand...
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.
 
Qamar Baloch

Qamar Baloch

Messages
1,260
Reaction score
676
Points
123
aroojshahzad said:
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Economics (9708)/9708_s12_qp_12.pdf

can anyone answer Q17 from the mcq paper?
Click to expand...
3 is elastic and 1 is unitary elatic. It is so becasue when price elasticity of demand is unitary elastic there will be no change is total expenditure and in case of elastic demand price and total expenditure are negatively related. When price rises total expenditure will fall and vice versa. It can be observed in the graph.
 
blueberryyums

blueberryyums

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Hello. Does anyone please have summarised notes on Exchange Rate, Inflation and BoP? The last 10 questions, I find myself using deep logic rather than knowledge and tend to miss a couple of marks and waste time. Please help me. I am self-taught in Economics and I have no time to go through each line of the text book (because I have another paper on Monday which I need to thoroughly study). I want a simpler form. i.e. Increase in interest rates leads to increase in demand for $ e.t.c. Please and thank you. :)
 
A

aroojshahzad

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Qamar Baloch said:
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.
Click to expand...
thank you soo much sir i understand how you explained it. do we need to know how does the final demand curve looks like?
 
Qamar Baloch

Qamar Baloch

Messages
1,260
Reaction score
676
Points
123
blueberryyums said:
Hello. Does anyone please have summarised notes on Exchange Rate, Inflation and BoP? The last 10 questions, I find myself using deep logic rather than knowledge and tend to miss a couple of marks and waste time. Please help me. I am self-taught in Economics and I have no time to go through each line of the text book (because I have another paper on Monday which I need to thoroughly study). I want a simpler form. i.e. Increase in interest rates leads to increase in demand for $ e.t.c. Please and thank you. :)[/quote
Dear I would suggest u to download these notes from S_cool.com
Click to expand...
 
A

aroojshahzad

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janicenxy said:
Hi, I think is...
from S1, price multiply quantity (tonnes) , 5* 2 = 10 000 tonnes
from S2, demand have to shift from quantity 4 to 5 in order to get price multiply quantity, 2*5 = 10 000 tonnes.
From 4 to 5, is 1000 tonnes.

Hope this helps.
Click to expand...
thank you :)
 
blueberryyums

blueberryyums

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janicenxy said:
Hi sir,

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

http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Economics (9708)/9708_s12_qp_12.pdf
May/June Paper 12 Question 8
Click to expand...

The question asked for cross elasticity of good Y against PRICE of good X. The key word is we are looking at the QUANTITY of Y and the PRICE of X.

Old Qy is 20 and new Qy is 30

Old Px is 8 and new Px is 10.

My way of calculating is (Qnew - Qold/ Qold) / (Pnew-Pold/Pold)

Once you solve that, you get an answer of 2. The equations in the options all have 2 in their range except for A so you eliminate A.

C is the most suitable answer because it has the number 2 in it.

Hope I helped :)
 
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