A Level Economics:

[Qamar Baloch]

You all are more than most welcome. God bless you all and grant you an astonishing success.

 

[Muhtasim Ali]

Did anyone answer sec B question 4?

 

[kainat husain]

i answered the third question
section A was ewwwww

 

[Muhtasim Ali]

Need someone who has answered question4.

 

[Muhtasim Ali]

i answered the third question
section A was ewwwww

In sec A there was a question asking why appreciation was better for China. So what did you write

 

[architnsk]

guys what points did u include for section B question 3(b)

 

[geni0usheeni]

In sec A there was a question asking why appreciation was better for China. So what did you write

im nt sure of my ans.. but i wrote somewat abt ths..
adv of appreciation: control inflation, maintains competition n efficiency among domestic firms since imported goods would be cheaper, reduce demand pull inflation since higher price of exports...
not better i talked of net exports wud be declining shfting AD to the left causing a deflationary gap (with a diagrm illustratng it)

 

[Muhtasim Ali]

Not demand pull it's cost push.. Didn't youwrite aabout Marshall learner

im nt sure of my ans.. but i wrote somewat abt ths..
adv of appreciation: control inflation,

im nt sure of my ans.. but i wrote somewat abt ths..
adv of appreciation: control inflation, maintains competition n efficiency among domestic firms since imported goods would be cheaper, reduce demand pull inflation since higher price of exports...
not better i talked of net exports wud be declining shfting AD to the left causing a deflationary gap (with a diagrm illustratng it)

maintains competition n efficiency among domestic firms since imported goods would be cheaper, reduce demand pull inflation since higher price of exports...
not better i talked of net exports wud be declining shfting AD to the left causing a deflationary gap (with a diagrm illustratng it)

 

[kainat husain]

Not demand pull it's cost push.. Didn't youwrite aabout Marshall learner

what did u guys write for second last question in SECTION A?
i left it :/

 

[Muhtasim Ali]

Listen you have to write both pros and cons of appreciation.. Related to question 3.At the end consumers wud be exploited with higher price. Appreciation makes import cheaper. So Chinese firms could import essential raw materials at cheaper price. Withthese raw mmaterials they can produce more goods and services and export further.

what did u guys write for second last question in SECTION A?
i left it :/

 

[geni0usheeni]

Not demand pull it's cost push.. Didn't youwrite aabout Marshall learner

no ddint write abt tht... jst concluded tht to know the overall effect we should know abt the actual position of china's economy (unemployement rate n all)

 

[rhoveesh]

Thanks sir..was helpful in section B

 

[joesmith]

guys can anybody explain me this question please i don't understand why the answer is D

 

[Qamar Baloch]

Those who are going to appear in AS/A/O Level economics in June 2014 may post their doubts here.

 

[Mokaarim]

guys can anybody explain me this question please i don't understand why the answer is D

Greetings!

To answer this question, you must look at the curves separately.
---
FIRST INFO: When Price rises, Short Run response > Long Run response.
Now you have to consider all curves ABOVE Price meaning XY & VY. Next, you have to consider that these are Demand curves so a GREATER response hints that the Demand has to be more ELASTIC (or less INELASTIC). From our selected curves, you choose the one that is more ELASTIC which is XY.

{WHY is XY more ELASTIC? It shows more change in quantity at price change as compared to the other curve}

SECOND INFO: When Price falls, Short run response < Long Run response.
Now you have to consider all curves BELOW Price meaning YW & YZ. Now you have to consider that these are Demand curves so a SMALLER response hints that the Demand has to be less ELASTIC (or more INELASTIC). From our selected curves, you choose the one that is less ELASTIC which is YW.

{WHY is YW less ELASTIC? It shows less change in quantity at price change as compared to the other curve}

Putting them together XY + YW = XYW (the answer D)

Hope I answered your question

 

[Glory Hunter]

Khamorgy1998

 

[kainat husain]

someone please helpme with
paper 12 2011
question 10
asap

 

[Mokaarim]

someone please helpme with
paper 12 2011
question 10
asap

To answer your question, you must first identify what type of Elasticity is involved. The question asks: "What would be the change in the volume of rail travel resulting from a 1% increase in bus fares?"

->Price Elasticity of Demand (PED) measures the responsiveness to the change in Quantity Demanded with the given change in Price.
->Cross Elasticity of Demand (XED) measures the responsiveness to the change in Quantity Demanded of Product A with the given change in the Price of Product B, where Products A & B are either complements or substitutes.

Rail and Bus are different products (services). In fact, it is safe to assume that they are substitutes and so, this is XED. Formula for XED is: (Percentage Change in Quantity Demanded of Product A)/(Percentage Change in Price of Product B)

Now we need to choose the correct value of Elasticity from the Table. It can't be -0.37 or -0.43 as these show the PED. From the remaining 2, we choose +0.16 because this shows XED of rail travel with respect to bus fares.

Enter values into Formula:
(x%) / (1%) = 0.16

Therefore: +0.16% i.e. an increase of 0.16%

Answer is A

 

[kainat husain]

To answer your question, you must first identify what type of Elasticity is involved. The question asks: "What would be the change in the volume of rail travel resulting from a 1% increase in bus fares?"

->Price Elasticity of Demand (PED) measures the responsiveness to the change in Quantity Demanded with the given change in Price.
->Cross Elasticity of Demand (XED) measures the responsiveness to the change in Quantity Demanded of Product A with the given change in the Price of Product B, where Products A & B are either complements or substitutes.

Rail and Bus are different products (services). In fact, it is safe to assume that they are substitutes and so, this is XED. Formula for XED is: (Percentage Change in Quantity Demanded of Product A)/(Percentage Change in Price of Product B)

Now we need to choose the correct value of Elasticity from the Table. It can't be -0.37 or -0.43 as these show the PED. From the remaining 2, we choose +0.16 because this shows XED of rail travel with respect to bus fares.

Enter values into Formula:
(x%) / (1%) = 0.16

Therefore: +0.16% i.e. an increase of 0.16%

Answer is A

thnxxx

 

[kainat husain]

Those who are going to appear in AS/A/O Level economics in June 2014 may post their doubts here.

Sir, when will you post the guess paper for A levels?