hehe , Dasith to da rescue
By the way hope u get it in time lol
7) ans is b because when PED = 1 , we gotta assume revenue is equal @ any level of output / price, @ least thats wat the cambridge assumes
,
Revenue here is 12 x 4000
i.e 48000
If we assume that revenue is same @ output of 20000 then Price =
48000/20000 = 2.4
19)
country N :
Gives up 1 Y for 4 X ( hope u knw hw to calculate that )if not just tell me
Country M:
gives up 1 Y for 2 X (hope u knw this too )
country N produces X & M produces Y(after specialisation)
so u can see if they Trade @ price 1y=3x here country N will gain because it has to give up ony 3x to get 1 y compared to 4x before specialisation , & country M gets 3 x for one y , where b4 specialisation it had got only 2x for every 1 y
ans = A
27)
Increased in ternational competition means Reduction in prices of imports(negetive inflation) , i.e because world supply curve is much lower(usually ) than domestic curves , & worsening of current a/c means people buy the cheap imports,which leads to increase in supply of local currency in world markets so exchange rate depreciates
ans is D
28)
pound appreciates againts
$*
euro appreciates against pound
so which means
euro appreciated agains
$ too because $ depreciated agains pound !
soo this means
$ againts
pound depreciates*
&
$ depreciates agianst
euroans is C
27)
