hey guys all of ya......even i did the food weightage thingy...amusingly my data respnse went better than essay where i chose the subsidy and air travel; question........was so tense about the paper............by da way these were the question PLEASE MARK ME ALL YOU ECO STUDENTS
a) explain effect of subsidy on govt and consumer expanditure
b) Discuss the reduced airfare on a low budget airline on its market and the markets related...
a)
i first defined subsidy and then drew diagram on effect of subsiy.......next i drew another diagram shading the govt expenditure showing its increase...............and explaining it and then i drew one more diagram shading the fall in producer expenditure and xplaing it.........8 marks questiion wat would u mark me
b)
first described effect on good with diagram..........fall in price , higher supply more demand. then i referred to its elastcity and how it would effect the change
then i defined substitutes and compliment good
then for each said the XED as positive or negative and showed therir effects with a diagram eg. increas deman and price forcompliment and fall for substitutes lastly
i said that if it was inferior airline then income changes may affect it.........and referred to the income elasticity of demanm.........it was 12 marks however i feel my discussion was very less at the end.....mark me
THANKS GUYS..........by da way how was todays paper........it was pretty easy.........am i allowed to discuss or wait.......
For part a) I think it's fine, but they asked about consumer expenditure? Not producer expenditure. You're supposed to discuss government expenditure as well. For example like if you put a subsidy on petrol, how much the government would have to spend in order to pay up for the subsidies. I think you drifted away from it's meaning...
For part b) When price drops, you need not discuss about supply. And in actual fact, if you're in a business, you find that prices of goods are dropping, would you supply more? I doubt so. And your essays, from what I can see are very technical. You should give more examples. For instance, you can say that since airfares are being reduced, consumers may want to travel more often provided that their income does not decrease. This may lead to a boost in tourism and may either generate revenue domestically due to domestic travels or give the country an improvement in the current account balance if there are many tourists from abroad. However, countries which may have no value of travel may suffer an outflow of money in this sector which may lead to a CAD.
I think you can put it that way...
And By the way, the paper today was fine
But it's better to not discuss it until 24 hours is over
