Economics, Accounting & Business: Post your doubts here!

Esme · May 10, 2012

00mfr said:
B is not the answer because if for example a consumer spends $10 on something,
then the price reduces of the commodity and demand rises and this could mean that a consumer demands more of that product but bcuz the price is falling, the expenditure might not increase.
also we dont noe how much is the rise in demand and the fall in price, its possible for consumer expenditure to fall if demand is increasd at a slower rate than the rate of fall in prices.
i know it sounds confusing but i tried :/

thanks i understood now.

Esme · May 10, 2012

student92 said:
rectangular hyperbola, its there in our syllabus, i have seen mcq s for it
it is the curve for unitary price elastic demand,
any combination of the price and quantity will give the same area under the curve, which is total expenditure from a consumer point of view, and from producer point of view it is total revenue,
thats why, when ped is 1, price changes will bring an equally popotionate change in quantity

when you get this concept,option b in the next mcq, will seem to be wrong for you, as consumer expenditure depends not only on price , but on the price elasticity also,
b is true for price elastic demand only, not for inelastic demand
hope this helps

actually i got it that a rectangular hyperbola always has unitary elaticity but i dint knw the shape of the curve.the diagram you hav posted.. is dat the hyperbola ?

Esme · May 10, 2012

there isnt any question in the past pprs regarding donations i think. its jus dere in our book.

student92 · May 10, 2012

Esme said:
actually i got it that a rectangular hyperbola always has unitary elaticity but i dint knw the shape of the curve.the diagram you hav posted.. is dat the hyperbola ?

yes
http://www.bized.co.uk/reference/diagrams/Unit-Elastic-Demand-Curve

student92 · May 10, 2012

our acoounting book is soo outdated, it must have a new editio now

student92 · May 10, 2012

partnership changes and company account
these are the new topics for accounts right?
is there any papetpaper for them, i know there are questions in p4, but some easy as level questions

Esme · May 10, 2012

ours is accounting by H. Randall. but i guess its the new edition :notsure:

Esme · May 10, 2012

yes there questions on partnership changes.
company accounts are usually in p1.

Esme · May 10, 2012

for partnership changes (p2) :
oct/nov 03 q2
oct/nov 06 q1

Esme · May 10, 2012

the removal of tax shifts the supply curve to the right so cant the answer be D?
i know that a subsidy will cause it to shift to the right.

student92 · May 10, 2012

Esme said:
for partnership changes (p2) :
oct/nov 03 q2
oct/nov 06 q1

thanks

shanky631 · May 10, 2012

Esme said:
View attachment 9122
the removal of tax shifts the supply curve to the right so cant the answer be D?
i know that a subsidy will cause it to shift to the right.

this question is from which paper.

student92 · May 10, 2012

Esme said:
View attachment 9122
the removal of tax shifts the supply curve to the right so cant the answer be D?
i know that a subsidy will cause it to shift to the right.

jk is the subsidy per unit, mustiply by that the quatity, which in essesnse mean the area jklm, it is the cost to the governemnt og giving susbsidy,
i dont thinkk so this could have helped you, but b is the corect answer, and i have no idea what a lump sum tax is, so d is out for me

shanky631 · May 10, 2012

hey guys we don't have dissolution (partnership) in accounts syllabus, right??????

Esme · May 10, 2012

shanky631 said:
this question is from which paper.

oct/nov 2011 p11

Esme · May 10, 2012

student92 said:
jk is the subsidy per unit, mustiply by that the quatity, which in essesnse mean the area jklm, it is the cost to the governemnt og giving susbsidy,
i dont thinkk so this could have helped you, but b is the corect answer, and i have no idea what a lump sum tax is, so d is out for me

ummmmm...... yea i already knew this much.
lump sum tax is a tax of a fixed amount.

youzair · May 10, 2012

Esme said:
View attachment 9122
the removal of tax shifts the supply curve to the right so cant the answer be D?
i know that a subsidy will cause it to shift to the right.

Guys listen the commodity here is RICE its an agricluture product and is necessity so govert usually subsidise such gooods because to make it available to large numb of consumers govt usually never put high or no taxes its an assumption state generate revenue from luxuries category good

Xtremite · May 10, 2012

Please explain this to me =(
Q.28 (May/June 2003) Link: http://www.xtremepapers.com/papers/...d AS Level/Economics (9708)/9708_s03_qp_1.pdf

Q. Country X trades with only two countries, USA and Japan.
90% of the country’s trade in goods and services is with the USA and 10 % is with Japan.
The original value of the trade-weighted exchange rate index is 100.
The change in the value of country X’s currency against the US$ is +10%. The change in the
value of country X’s currency against the Japanese yen is +50%.
What will be the value of country X’s new trade-weighted exchange rate index?
A 114
B 115
C 130
D 160

youzair · May 10, 2012

Xtremite said:
Please explain this to me =(
Q.28 (May/June 2003) Link: http://www.xtremepapers.com/papers/...d AS Level/Economics (9708)/9708_s03_qp_1.pdf

Q. Country X trades with only two countries, USA and Japan.
90% of the country’s trade in goods and services is with the USA and 10 % is with Japan.
The original value of the trade-weighted exchange rate index is 100.
The change in the value of country X’s currency against the US$ is +10%. The change in the
value of country X’s currency against the Japanese yen is +50%.
What will be the value of country X’s new trade-weighted exchange rate index?
A 114
B 115
C 130
D 160

Us weight 90
Japan is 10
90 multiply by 10%= 9
10 multiply by 50%= 5
We have multiply weights to check the effect as more weight means larger prefrence on that good...
As country X currency has depreciated against US by just 10% means it will cost 110% now, 100 org + 10 new er. Same with Japan.
Now if you add previous weighted er + the calculated one because X currency depreciated so u will get 99 for US and 15 for Japan so new weighted er will be 114

mimiswift · May 10, 2012

youzair said:
which one???

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