BUSINESS and ECONOMICS:post your doubts here!

[Kushal lodha 5336]

According to me, the answer should be D.
But it's C in the MS. How?

 

[Sana Adnan]

C

My Answer is coming 2. So is it C or D?
View attachment 48139

 

[Sana Adnan]

My Answer is coming 2. So is it C or D?
View attachment 48139

How much of the subsidy will the producer absorb here?
View attachment 48140

Please refer to my tutorial http://sanaadnan.wordpress.com/economics-2/99-2/

 

[Sana Adnan]

According to me, the answer should be D.
But it's C in the MS. How?
View attachment 48150

Under normal equilibrium price consumer surplus would have been F+G+H. While the imposition of maximum price reduces the price, it also shrinks the quantity traded because supplier are not willing supply the same quantity at lower prices. Therefore the new consumer surplus would be F+G+I

 

[Sana Adnan]

Under normal equilibrium price consumer surplus would have been F+G+H. While the imposition of maximum price reduces the price, it also shrinks the quantity traded because supplier are not willing supply the same quantity at lower prices. Therefore the new consumer surplus would be F+G+I

for tutorials please like my page https://www.facebook.com/sanaiqbaladnan and visit http://sanaadnan.wordpress.com/

 

[Sana Adnan]

According to me, the answer should be D.
But it's C in the MS. How?
View attachment 48150

Under normal equilibrium price consumer surplus would have been F+G+H. While the imposition of maximum price reduces the price, it also shrinks the quantity traded because supplier are not willing supply the same quantity at lower prices. Therefore the new consumer surplus would be F+G+I

 

[Sana Adnan]

What do they mean by economic winners and losers?
View attachment 48145

Economic winners and losers is a concept that falls under the Market Failure and Allocative Efficiency Theory. According to the Pareto Principle of efficiency, an individual cannot be made better off without making another person worse off. So the person who benefits from an economic activity would be an economic winner while the one who bears the cost would be the loser. For more details on this, please go through my notes http://sanaadnan.wordpress.com/economics-2/99-2/

 

[Sana Adnan]

???
View attachment 48142

B

 

[Kushal lodha 5336]

C

But the answer is 2 right?
And option D also contains 2
So why not option D?

 

[Kushal lodha 5336]

Under normal equilibrium price consumer surplus would have been F+G+H. While the imposition of maximum price reduces the price, it also shrinks the quantity traded because supplier are not willing supply the same quantity at lower prices. Therefore the new consumer surplus would be F+G+I

Ohhhhhhhh... Yeahhhh righttt....
Got itttt...Thnxxx a ton...

 

[Kushal lodha 5336]

for tutorials please like my page https://www.facebook.com/sanaiqbaladnan and visit http://sanaadnan.wordpress.com/

Okay..!

 

[Kushal lodha 5336]

Economic winners and losers is a concept that falls under the Market Failure and Allocative Efficiency Theory. According to the Pareto Principle of efficiency, an individual cannot be made better off without making another person worse off. So the person who benefits from an economic activity would be an economic winner while the one who bears the cost would be the loser. For more details on this, please go through my notes http://sanaadnan.wordpress.com/economics-2/99-2/

Thank you so much...!!!

 

[Kushal lodha 5336]

B

But in the marking scheme, it says D..
:/

 

[A.Chaudhary]

How break even point be found?

 

[Sana Adnan]

How break even point be found?

It can be found graphically and numerically. Also it can be found both in units and in money terms. Which method you want to know about?

The standard break even formula is Fixed Cost/ (Selling Price - Variable Cost)