Qualification > Commerce

need help in economics AS question

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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:

--- Quote from: Priya on May 31, 2009, 04:43:26 pm ---@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

--- End quote ---

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

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