Economics p3 post ur doubts here..:)

[David Hussey]

 

[David Hussey]

 

[David Hussey]

 

[David Hussey]

 

[David Hussey]

SOS!

 

[:: A^]

View attachment 44742

a change in unemployement benefeits or tax always has a non-paralel change.

View attachment 44743

dirty float means they are using currency reserves to maintan the exchange rate when it depreciates.

View attachment 44744

when working hours reduce, firms will demand less as its now less profitable for them, however, individuals will be supplying more labour as they have to work less.

View attachment 44745

this is a byheart case

 

[David Hussey]

a change in unemployement benefeits or tax always has a non-paralel change.

dirty float means they are using currency reserves to maintan the exchange rate when it depreciates.

when working hours reduce, firms will demand less as its now less profitable for them, however, individuals will be supplying more labour as they have to work less.

this is a byheart case

everything is non parallel -_-
since work hours are reducing, shoudnt supply curve shift to left? :/
last one, i know output increases because in the short run employment inc, but why would price increase?

 

[:: A^]

everything is non parallel -_-
since work hours are reducing, shoudnt supply curve shift to left? :/
last one, i know output increases because in the short run employment inc, but why would price increase?

demand pull inflation maybe..
and unemplyment benefits change autonomus spending too...
and people will supply more because they have to work less.. common sense =P

 

[AlphaBeta]

View attachment 44743

dirty float= managed float

 

[AlphaBeta]

i got da answer but not 100% sure of the logic , answer B ,hw ?

 

[:: A^]

View attachment 44746
i got da answer but not 100% sure of the logic , answer B ,hw ?

u got to reduce the QD after the increase in price using the PED value theyve given..

 

[unique111]

u got to reduce the QD after the increase in price using the PED value theyve given..

What?!

 

[David Hussey]

not sure if this is correct
use the PED formula to find change in qty demanded
1.5=X/10 m using 10 because price will have to go up by 10% because of the tax
so X=15
before revenue for firm was 1000*1= $1000
now demand goes down by 15 so 1000-15=985
985*1.1=1083.5
difference is the tax revenue
1083.5-1000=83.5 round it of 84
its close to 85 so ans is b
m not really sure about this

 

[David Hussey]

just because of a quota, why would a firm close down?

 

[David Hussey]

 

[AlphaBeta]

not sure if this is correct
use the PED formula to find change in qty demanded
1.5=X/10 m using 10 because price will have to go up by 10% because of the tax
so X=15
before revenue for firm was 1000*1= $1000
now demand goes down by 15 so 1000-15=985
985*1=1083.5
difference is the tax revenue
1083.5-1000=83.5 round it of 84
its close to 85 so ans is b
m not really sure about this

got da answer man , qty chng = 850
pric = 1*850
pric now = 935
so gvt rev = 935-850= 85

 

[AlphaBeta]

View attachment 44747
just because of a quota, why would a firm close down?

all oda options are wrong . thats y

 

[David Hussey]

how 850?

 

[David Hussey]

all oda options are wrong . thats y

wb B?

 

[AlphaBeta]

how 850?

chng in qty = 15%
so b4 was 1000 qty
now 1000 *85%=850