economics paper 1.. how was it

[Wr 10 Roney]

wht was ur answer for Wool question

and disequilibrium q?

supply shiftsto left since sheep have died
diseq can be shown by increase in foreign reserves... which show the is an increase inflow in country ergo the country's BOP is in disequilibrium...

 

[username!]

i hate those bots

 

[azfar kashif]

wht was ur answer ov dat DVD question ... i marked C

it was suppy left n demand right

both should go to the left ... s to the left because of high production costs
d to the left because he finances the 1 billion bu charging extra cost to consumers....

Yep, agreed! Both shifted to left............ Supply because, it will decrease as more than a billion dollar was spent, so cost increased and demand because it would fall since, the price has increased!!!!!

 

[azfar kashif]

wht was ur answer for Wool question

and disequilibrium q?

supply shiftsto left since sheep have died
diseq can be shown by increase in foreign reserves... which show the is an increase inflow in country ergo the country's BOP is in disequilibrium...

U got the wool one wrong! the question clearly mentioned the term SHORT TERM!!!! In short term, the supply curve can't be changed! It is only possible to shift on another point on the same supply curve!!!!!

 

[azfar kashif]

wht was ur answer for Wool question

and disequilibrium q?

supply shiftsto left since sheep have died
diseq can be shown by increase in foreign reserves... which show the is an increase inflow in country ergo the country's BOP is in disequilibrium...

And according to some teachers, the correct answer of disequilibrium one is "the balancing item"!!!!=)

 

[danishjan]

@ the dvd wala questions......
tum log pagal crack ho kia?: yeh nahi pata ke demand doesnt shifts due to the price factor......

supply will shift to left and and demand will shift right as there will be no piratec cds avaiable...so pirated cd users will shift according to the substitition effect
this is confirmed

 

[khalid]

@ the dvd wala questions......
tum log pagal crack ho kia?: yeh nahi pata ke demand doesnt shifts due to the price factor......

supply will shift to left and and demand will shift right as there will be no piratec cds avaiable...so pirated cd users will shift according to the substitition effect
this is confirmed

han mai bhi yehi kehne wala tha.... dis was de question to discriminate between stronger and weaker candidates

 

[azfar kashif]

Agar price of a DVD increases from 100 rs. to 150 rs. , then u wanna say that still demand will remain the same? Doesn't make sense!!!! As we don't know, whether the campaign was successful or not???? If it wasn't, pirated dvds are still available!!!!

 

[khalid]

pirarted DVDs are not availble becoz of SUCCESFUL campaign and due to price, the movement is along the demand curve

 

[laviva]

but they asked what will happen to the market for LEGAL dvds....i thought supply curve will shift to the right
and what about the question about balance of payments disequilibrium??

 

[laviva]

wht was ur answer for Wool question

and disequilibrium q?

supply shiftsto left since sheep have died
diseq can be shown by increase in foreign reserves... which show the is an increase inflow in country ergo the country's BOP is in disequilibrium...

U got the wool one wrong! the question clearly mentioned the term SHORT TERM!!!! In short term, the supply curve can't be changed! It is only possible to shift on another point on the same supply curve!!!!!

movement along the curve only occurs due to a change in price..any other factors will cause a shift of the curve..so in the wool question supply will shift to the left

 

[danishjan]

yaar yaahan per sub jaahil hian.......bhaiyo meri jaan! wool wala jo hai woh supplly will shift to the right! strange! hain na? but be sensible the question states wool not meat...so jab ziaada sheeo dead hongi touu wool short run me bahut barrh jaegah............and dvd waale ki jahan tak baat hai....demand doesnt shifts due to price factor...yeh baat nahi pata kia tumhe?

 

[ahsanxr]

^ From what I remember, unchanged wasn't an option.

 

[danishjan]

bhaio answer is supply shift left.,.and demand right

 

[ahsanxr]

Why would it shift to the right?

 

[danishjan]

very good questioion
b4 piracy was stopped..there was a black market for pirated cds avaialable for loww prices people used to buy themmm...but now piracy has been suucessfuly controlled by spendig that money....so as the pirated cds users will have no choice and shift to licenced dvd...so as per the substitiuon effect ...demand shift right....for eg. if u dont get a windows cd for 30 rs in khi what will u do?
u will be forced to buy the original windows cd for 300 dollars which will shift the demand right....

 

[ahsanxr]

^ Good point. You're correct.

Anyone remember the answer to 28? The one with the exchange rates relative to the Jamaican currency? Was it D?

 

[danishjan]

it was guaranteed D barbados.......wool wala question was really tricky...no one could do that

 

[mz23]

yes it was D...what do you reckon the threshold will be? the lowest it has gone is 23

 

[ahsanxr]

I don't remember that question. And good to hear that it was D Barbados. Everyone was disagreeing with me. Same for the first one about PPC. It was C right?