Qualification > Commerce

need help in economics AS question

<< < (5/10) > >>

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:

--- Quote from: candy on June 01, 2009, 04:56:51 pm ---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

--- End quote ---
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:

--- Quote from: Priya on May 31, 2009, 07:12:05 pm ---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

--- End quote ---

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

Navigation

[0] Message Index

[#] Next page

[*] Previous page