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Economics, Accounting & Business: Post your doubts here!

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Shara Nafaz said:
Can anyone help me wid dis question.
Its may/june 2006 Paper 1 Q7

The price elasticity of demand for good X is 1. At a price of $12, quantity demanded is 4000 units.
What will be the price when quantity demanded is 20 000 units.

A $2.00 B $2.40 C $2.66 D $20.00
Click to expand...
Since elasticity is 1 so TR=TE
initial TR = 12x4000 = $48000
Therefore for 20000 units --> 48000/20000 = $2.4 B
 
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Lostsoul said:
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s12_qp_33.pdf
How do you get B for number1 pls help!!
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AlphaBeta said:
same problem here ....
Click to expand...
First find the Realisation profit.
This can be found by finding the total capital value at the beginning. i.e. capital of X plus capital of Y = 172000+99500 = 271500
This was sold for $285000. Therefore profit = 285000-271500 = 13500.
Divide this and the Legal cost by the profit sharing ratio.
Therefor X will get 172000 + (13500/3*2) - (3000/3*2) = $179000
Y Will get 99500 + (13500/3*1) - (3000/3*1) = $105000
Therfore answer is B
 
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zara97

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in a process costing question, fixed overheads are to be allocated on every unit. In process 2, some work-in-progress arises, sowill the fixed cost only be charged on completed units or on all units entering the process, in the absense of any other information.
And if asked to find the annual net cash flows from a machine, do we only take into account operational reciepts and payments or the cost, additional working capital and the scrap value as well???
 
Mohammad Farzanullah

Mohammad Farzanullah

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can someone plz help me with this eco mcq!!

Q. in an economy, the volume of output rises by 4% in a year, while the quantity of money rises by 7%. If the velocity of circulation of money remains the same, what will be the increase in money value of national income and the price level?

A. money value of income by 3% and the price level by 4%
B. money value of income by 4% and the price level by 7%
C. money value of income by 7% and the price level by 3%
D. money value of income by 11% and and the price level by 7%
 
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panoramafolks

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Mohammad Farzanullah said:
can someone plz help me with this eco mcq!!

Q. in an economy, the volume of output rises by 4% in a year, while the quantity of money rises by 7%. If the velocity of circulation of money remains the same, what will be the increase in money value of national income and the price level?

A. money value of income by 3% and the price level by 4%
B. money value of income by 4% and the price level by 7%
C. money value of income by 7% and the price level by 3%
D. money value of income by 11% and and the price level by 7%
Click to expand...


Ans. M.V = P.Y

Y = +4
M= +7
V = costant

M + V = P+ Y
7-4 = +3

P= +3 ( Hence ans. is C)
money value of income rises same by qty of money ie , +7

Ans is C.
Please tell me if its correct.
 
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