A Level Economics:

[Qamar Baloch]

https://www.facebook.com/photo.php?...00002114803570&type=1&relevant_count=1&ref=nf

 

[Neha Gupta]

Thanks Muhammad..
Is there any mathematical derivation, which proves that PES remain constant if curve start from origin?

 

[Muhammad Bin Anis]

Thanks Muhammad..
Is there any mathematical derivation, which proves that PES remain constant if curve start from origin?

yes for sure.

a straight line has a
constant gradient

 

[Qamar Baloch]

yes for sure.

a straight line has a
constant gradient

good

 

[Qamar Baloch]

Component results are out now.

 

[AlphaCentauri]

Thanks Muhammad..
Is there any mathematical derivation, which proves that PES remain constant if curve start from origin?

Trigonometry. Similar triangles.

PES = Change in Quantity. Price/ Change in Price. Original Quantity

Gradient is = Change in P/ Change in Q [y-axis/ x-axis] ==> Reverse of what is in the PES formula.

It's misleading to conclude on Price Elasticity based on gradients or PED too, for a straight line, should've been constant. Use similar triangles. It's constant because, and only when, it starts from 0.

 

[Muhammad Bin Anis]

Trigonometry. Similar triangles.

PES = Change in Quantity. Price/ Change in Price. Original Quantity

Gradient is = Change in P/ Change in Q [y-axis/ x-axis] ==> Reverse of what is in the PES formula.

It's misleading to conclude on Price Elasticity based on gradients or PED too, for a straight line, should've been constant. Use similar triangles. It's constant because, and only when, it starts from 0.

explain me in a pvt msg please

 

[AlphaCentauri]

explain me in a pvt msg please

Hmm... what should I explain? I mean, I already gave the formula and the gradient.
And why not here? Everybody will benefit.

 

[Muhammad Bin Anis]

Hmm... what should I explain? I mean, I already gave the formula and the gradient.
And why not here? Everybody will benefit.

no prob bro .. u can xplain here

 

[AlphaCentauri]

yes for sure.

a straight line has a
constant gradient

I gave the formula. So, from there PES = Change in Quantity. Price/ Change in Price. Original Quantity is constant since it is the reciprocal of the gradient.
But that isn't the reason why PES is 1, i.e. constant. It's 1 because when it starts from O, Price/ Original Quantity is equal to the reciprocal of the gradient, so they both cancel out. Use the properties of similar triangles to see it:
http://www.mathsteacher.com.au/year9/ch13_geometry/08_similar/Image3026.gif

Now, if we go by the reason you gave, so a straight line that does not start from 0 too should have a constant PES-- which it doesn't. If I start it from the price-axis I don't get a triangle. So, only the red part I highlighted above remains constant, and PES will therefore depend on Price/ Original Quantity. It's better to understand the logic using the demand curve, where even a straight line demand 'curve' has no constant PED, it can vary from 0 to infinity if the demand curve touches both axes.

Price/ Original Quantity => If quantity is zero, PED = Infinity
=> If price zero, PED= 0.

no prob bro .. u can xplain here

Sis*

You're getting me?

 

[Qamar Baloch]

nice. keep on discussing things

 

[Qamar Baloch]

https://www.facebook.com/pages/AS-Level-Economics-Paper-2/298366393518325

 

[hardik]

i m frm india....how is ur book available.....how can i get it............???????????????

 

[Qamar Baloch]

Dear its not available India.

 

[hardik]

i noe..............but is there anyway to get it

 

[shanky631]

can anyone tell me the valid points to be written for this question. and what is the link between diminshing marginal returns and economies of scale???

 

[urvesh]

Hi Qamar sir and others.

Please explain: http://www.xtremepapers.com/papers/... AS Level/Economics (9708)/9708_w11_qp_32.pdf

Q7. Answer is B.

Thanks!

 

[urvesh]

also, http://www.xtremepapers.com/papers/... AS Level/Economics (9708)/9708_w11_qp_32.pdf

q19. answer is b(700)


thanks!!

 

[Qamar Baloch]

7B At the start input was 6+2=8 and output was 100. At the end input was 4 + 12 = 16 that is double and output was also double from 100 to 200. So, it satisfies the criteria of constant returns to scale. It is, double the input if output is also double, it is constant returns to scale.

Hi Qamar sir and others.

Please explain: http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Economics (9708)/9708_w11_qp_32.pdf

Q7. Answer is B.

Thanks!

 

[shanky631]

hello Qamar sir, can u plz help me with the structured question from paper 4 which i posted above.