Qualification > Commerce
ALL ECONOMICS DISCUSSION, PAPERS HELP HERE!!
nid404:
Is the answer C? :/
elemis:
--- Quote from: ~Xena~ on June 10, 2010, 10:18:24 am ---Is the answer C? :/
--- End quote ---
Yes, but how ?
aangel42:
--- Quote from: Ari Ben Canaan on June 10, 2010, 10:16:30 am ---This is probably one of the only questions in the eco past papers that I dont understand :-\
Anyone willing to EXPLAIN how to get the answer ? ;D
--- End quote ---
Yeah I think it must be C.
So if you first draw the (original) demand and supply, and they tell you that the quantity traded is the same as before then draw a line up from the original equilibrium point. The only way this can be the case is if the supply curve moves to the left (falls) and if the demand curve moves to the right (rises). The new equilibrium point will be directly above the original one (meaning quantity traded is the same as before), but the price will rise.
I hope this makes sense?
nid404:
--- Quote from: Ari Ben Canaan on June 10, 2010, 10:30:08 am ---Yes, but how ?
--- End quote ---
Logic :P
Basically if supply falls, demand will rise...this will tend to push the price of the commodity higher.
check the attachment...that may help you understand
elemis:
Its D because the TRANSPORT SERVICE is being exported to a foreign company i.e. ZImbabwe will be paying a foreigner to deal with the transport (a service in the tertiary sector) of the cars.
Trade in goods will worsen for obvious reasosns
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