Qualification > Commerce

ALL ECONOMICS DISCUSSION, PAPERS HELP HERE!!

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J.Darren:

--- Quote from: aangel42 on May 27, 2010, 11:31:48 am ---oh & also.... 2 questions:

1) how is an INCREASE/decrease in demand different from an EXTENSION/contraction of demand?
2) how is an INCREASE/decrease in supply different from an EXTENSION/contraction of supply?

if anyone could explain this clearly it would be muchhh appreciated.

--- End quote ---
Increase / Decrease involves a shift in the curve, this may be due to a number of factors. On the other hand, an extension and contraction of the demand and supply curves is solely due to a change in price.

J.Darren:
Factors that causes a shift in the demand curve :

- Fashion, habits
- Substitutes
- Complements
- Disposable income
- Population
- Income (normal / inferior goods)

Factors that causes a shift in the demand curve :

- Business optimism
- Cost of production
- Price of other goods
- Technological advancement
- Global factors

aangel42:
does a very high GDP per capita indicate a favorable balance of payments?

......not necessarily, right??

aangel42:
for economics: can anyone help me out with M/J paper 6, question 1c.
i SUCK at drawing demand and supply graphs. how do you guys do it???
ahhh i'm hoping and praying we won't have to do one on paper 3 tmrw Sad i will end up screwing it. bigggg time.

p.s i checked the mark scheme. it is no help. as usual. i'm attaching the paper though

thank youuuuu

abhia:

--- Quote from: aangel42 on May 27, 2010, 01:46:07 pm ---does a very high GDP per capita indicate a favorable balance of payments?

......not necessarily, right??

--- End quote ---

no, it doesn't necessarily,

because if theres alot of output produced in the country, there might also be other factors such as the country consumes all the output and not much left to export,

however, under the other conditions they have given you,
like if everything else is constant, then you can safely say that a high GDP per capita leads to a favourable balance of payments as more is exported.

you can also think about the fact that, even if a lot if produced within an economy, more might be imported from other economies, and if that import is greater than that export they are worse off producing,
the GDP per capita doesnt take into account imports :)

hope that helps.

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