need help in economics AS question

[crucio]

us $/euro exchange rate increase means that now there are more us$ per euro which means that us $ has depreciated and euro has appreciated. example it increases from $1.5/euro to $2/euro, this means that 1 euro can buy $1.5 but now it can buy $2 hence $ has depreciated 33.33% and euro has appreciated by the same amount

[twilight]

hi ppl ..
can any1 help in these multipl choice questions pleeeeeeeeeease ..
i've attached them
thanks in advance

[twilight]

sumbudy plzzzzz .. 

[Priya]

@twilight

If price elasticity of demand is equal to 1, total expenditure must be the same what ever you are changing (either price or quantity)

For the first one, Total expenditure = 12*4000 = 48000
Total expenditure must remain 48000 and quantity demanded must be 20000
Therefore, Price = 48000/20000 = 2.4

[twilight]

@twilight

If price elasticity of demand is equal to 1, total expenditure must be the same what ever you are changing (either price or quantity)

For the first one, Total expenditure = 12*4000 = 48000
Total expenditure must remain 48000 and quantity demanded must be 20000
Therefore, Price = 48000/20000 = 2.4

oooo okkkkzzzz ... i get it thankssssss 
i tried using the PED formula and it didnt work ..
i gt it now
thanks alot 
can u hlp me wid da second?

[Priya]

You are welcome... And the second one is basically the same.

unitary price elasticity of demand means ped=1, implying total expenditure should there remain the same.
Total expenditure=25*100000=2500000
Total expenditure should be 2500000 and the firm wants to sell 125000 units
Therefore price= 2500000/125000 = 20

[candy]

i have a question!! 

"Discuss whether stability in the domestic value of money is essential for the country's well-being"

this question is from may/june 05 paper 2

[twilight]

i have a question!! 

"Discuss whether stability in the domestic value of money is essential for the country's well-being"

this question is from may/june 05 paper 2

Stability in value would be upset by inflation. This causes problems with
the efficient working of the price mechanism, international competitiveness
and aspects of redistribution. Price stability can dent expectations and
profits and lead to lack of confidence and stagnation. These effects would
harm economic well-being. This may be shown by inefficiency,
unemployment, lower living standards etc. However the level of harm
depends upon the actual rate of change, whether or not it has been
anticipated and the comparative rate internationally. If these are relatively
favourable the effects may not cause significant instability. A low and
stable level of inflation is thought to encourage production and growth so
absolute stability is not necessary.

Understanding of inflation up to 2 marks
Discussion of harm done by inflation up to 6 marks}to max of
Discussion of circumstances when inflation up to 6 marks}10 marks
may be benign/beneficial

[solved]

Is it worthwhile studying the common agricultural policy? or not?
and will anything to do with agricuture be likely to come?

[twilight]

You are welcome... And the second one is basically the same.

unitary price elasticity of demand means ped=1, implying total expenditure should there remain the same.
Total expenditure=25*100000=2500000
Total expenditure should be 2500000 and the firm wants to sell 125000 units
Therefore price= 2500000/125000 = 20

omg ... thank u soooooooooooooo MUCHHHH  ... my old eco. tutor cudnt do it  lol .. U ROCK

[Some Guy]

both mcqs are actually based on the inverse relation between price and quantity demanded..... u can do them by the simple inverse proportion formula.

[twilight]

sorry peeps .. can u help wid this 1 too ?
i know that for the TOT to increase any of the following should occur
~increase in export prices with import prices constant
~increase in export prices with decrease in import prices
~constant export prices with decrease in import prices
~increase in export prices and import prices but with the increase in export prices > increase in import prices

this makes the answer to this question between B, C and D

can sum1 help please?
thanks in advance

[twilight]

and this question too please ..
why is it D not B ??  plz help
thanks
sorry i'm asking too much .. but i hav loads of doubs abt MCQs .. hope any1 can help

[twilight]

hey i thaught i help u with TOT qst u posted qst 27. 100 to 120 means tot improve expot price increse mre then import

knw it say terms increse frm 100 to 120 rite and tot=exprt/imprt*100

so let check option A if exprt price decrse by 10% and impot also then terms would b unchanged... do mathmatically 90/90*100=100

option B if exprt incrse by 10% and import decrse by 10% then by tat formula u dont get 120

now C option export increse by 20% and import unchage giving u 120/100*100=120 this is the answere as tot now 120 as said in qst

option again it would worsen ur terms of trade rather then improving it..

thankssss ALOTTTT buddy .. ur gr8 ... 

[twilight]

aa to b truthfull these qustion are really confusing lol normative is value judgment rite..

option B and D look mre appropiate cause it actual fact but D look mre apropaite put it this way as we knw if motorsit have to pay toll they would b at loss cause if they are also not able to afford bus ticket then no choice would b left for then ...confuisng a bit

hmmmm .. ur right .. its too confusing but i get it now  .. its clearer  ... thanks dude!!
can i ask more questions??