Qualification > Commerce

need help in economics AS question

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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:

--- Quote from: zombie on June 09, 2009, 02:55:29 pm ---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..

--- End quote ---

thankssss ALOTTTT buddy .. ur gr8 ...  :D :D

twilight:

--- Quote from: zombie on June 09, 2009, 03:04:43 pm ---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

--- End quote ---

hmmmm .. ur right .. its too confusing but i get it now  .. its clearer  ... thanks dude!! 8) :D
can i ask more questions?? :-[

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