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A Level Economics:

Mokaarim

Mokaarim

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Iqra aftab said:
Please help
Thanks in advanc
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Hello! The market clearing price has to be such a price that ensures total Supply is equal to 12 clocks. Only at $2(000) is Supply equal to 12 with X having 2, Y having 4 and Z having 6 clocks. Since the question tells us that at the beginning each collector had 4 clocks, it means that X is willing to sell two clocks (hence, the 2 in quantity) and Z is willing to purchase 2 clocks (thus the 6 in quantity)

So the answer is D
 
I

Iqra aftab

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a lot aarim said:
Hello! The market clearing price has to be such a price that ensures total Supply is equal to 12 clocks. Only at $2(000) is Supply equal to 12 with X having 2, Y having 4 and Z having 6 clocks. Since the question tells us that at the beginning each collector had 4 clocks, it means that X is willing to sell two clocks (hence, the 2 in quantity) and Z is willing to purchase 2 clocks (thus the 6 in quantity)

So the answer is D
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Thanks alot
 
L

Lisa Mccoy

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Mokaarim said:
Hello! The market clearing price has to be such a price that ensures total Supply is equal to 12 clocks. Only at $2(000) is Supply equal to 12 with X having 2, Y having 4 and Z having 6 clocks. Since the question tells us that at the beginning each collector had 4 clocks, it means that X is willing to sell two clocks (hence, the 2 in quantity) and Z is willing to purchase 2 clocks (thus the 6 in quantity)

So the answer is D
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i still dont get it pls
 
Mokaarim

Mokaarim

Messages
17
Reaction score
25
Points
23
Lisa Mccoy said:
i still dont get it pls
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I don't know if you're online but: Total Supply remains at 12 clocks since only 12 clocks were made. You have to find a combination of price and quantity which ensures that 12 clocks are present in the market. Try $1(000) : X has 4, Y has 6, and Z has 10 clocks, so this is incorrect. But when the price is $2(000), the total supply comes to 12 clocks. So only this price can be the Market clearing price. Hope you understand now (y)

Iqra aftab said:
Plz explain me this one.
Click to expand...
You have to find the ratio of Clothes to Food as this ratio is used in the question.

Country X - Country Y
Part A 1 : 3 - 1 : 2 Country X has comparative advantage in Clothes and Y of Food. But rate will not benefit both.
Part B 1 : 1 - 1 : 1 Same advantage so no trade.
Part C 1: 2 - 1 : 1 Country X has advantage in Food and Y in Clothes. And the rate will benefit both countries.
Part D 1 : 1/2 - 1 : 1 Country X has advantage in Clothes and Y in Food, but once more the rate is un-advantageous.
 
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