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Economics: Post your doubts here (O + A level)

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Eco.jpg Someone plz help me with this and also give tips how to Answer Elasticity Long 8/12 marks Question .... I suck at this topic :( MJ 2011/variant 23
 
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View attachment 53395 Someone plz help me with this and also give tips how to Answer Elasticity Long 8/12 marks Question .... I suck at this topic :( MJ 2011/variant 23
First we have to explain what is meant by PES.Then we have to compare the expected PES of both these goods.Like PES of agricultural is likely to be inelastic as it depends upon season and we can not quickly change the amount we can produce if suddenly demand rises.Also these goods are mostly perishable hence they can not be stored indefinitely and used up in times of drought when demand is high like we can not store bananas as they decompose very quickly hence that makes supply inelastic.Then we can also say that cultivation of crops takes a long time and we can not quicken it up significantly as most of the labor is bound to be unskilled.Also it can also be inelastic as it requires a lot of land and if land is all used up there is no spare capacity for production,hence overall it will be inelastic.Then we give the flip side arguement and explain that manufactured will be more elastic as they can import raw materials easily,quicken up production as they can more easily acquire fixed capital to increase spare capacity ,store in inventory and sell when prices are high.Hence they can be elastic.
 
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I need MCQ's Past Papers Compiled (Softcopy .pdf). If anyone having them kindly do share.
 
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hussain777 Hey all. Please help me put with this essay : discuss the ways in which a government might influence private investment in order to try to ensure sufficient economic growth in a country.
thanks in advaned
Whatsapp number 03056558801. For all Economics Business Studies and Accounting problems
 
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In a closed economy with no government, the level of investment is $5 million, the equilibrium level of income is $22 million, the full employment level of income is $25 million and there is a deflationary gap of $1 million. What can be deduced from this information?
A The marginal propensity to consume is 2/3 .
B The marginal propensity to consume is 1/3 .
C The value of the investment multiplier is 5.
D The value of the investment multiplier is 1.5.

Can someone please explain why A is the answer? Thank you!
 
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Sir Munawar Ghazi the best and renowned teacher of economics in Karachi. Those who are interested to purchase his notes can PM. Here is a sample of all the topics. Notes are available in HARD COPY and SOFT COPY.

HARD COPY
Price- Rs. 800

SOFT COPY
Price- Rs. 400
dewelopment economies.PNG Economic Efficiency.PNG Economic Growth.PNG Efficiency.PNG financial institution.PNG macroeconomics.PNG market failue.PNG market structure.PNG measurement of macro economic.PNG national income distri.PNG Economic Efficiency.PNG Economic Growth.PNG Efficiency.PNG financial institution.PNG macroeconomics.PNG market failue.PNG market structure.PNG measurement of macro economic.PNG national income distri.PNG
 
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Re: Any body can ask any thing about ECONOMICS


AOA!
-> Use Price Elasticity of Demand formula: P.E.D = % change in quantity demanded / % change in price
-> P.E.D = -1 (nearly all elasticities of demand are negative)
-> % change in quantity demanded = ( Change in demand (delta Q) / Original quantity (Q) ) x 100 => 80
-> % change in price = ( Change in price (delta P) / Original Price (P) ) x 100 => (P - 12$/P$)x100

-> -1 = 0.8 /(P-12/P)
Use simple maths, the answer'd come out as $2.40.
CAN U HELP IN IGCSE ECONOMICS
 
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