ALL ECONOMICS DISCUSSION, PAPERS HELP HERE!!

[J.Darren]

oh & also.... 2 questions:

1) how is an INCREASE/decrease in demand different from an EXTENSION/contraction of demand?
2) how is an INCREASE/decrease in supply different from an EXTENSION/contraction of supply?

if anyone could explain this clearly it would be muchhh appreciated.

Increase / Decrease involves a shift in the curve, this may be due to a number of factors. On the other hand, an extension and contraction of the demand and supply curves is solely due to a change in price.

[J.Darren]

Factors that causes a shift in the demand curve :

- Fashion, habits
- Substitutes
- Complements
- Disposable income
- Population
- Income (normal / inferior goods)

Factors that causes a shift in the demand curve :

- Business optimism
- Cost of production
- Price of other goods
- Technological advancement
- Global factors

[aangel42]

does a very high GDP per capita indicate a favorable balance of payments?

......not necessarily, right??

[aangel42]

for economics: can anyone help me out with M/J paper 6, question 1c.
i SUCK at drawing demand and supply graphs. how do you guys do it???
ahhh i'm hoping and praying we won't have to do one on paper 3 tmrw Sad i will end up screwing it. bigggg time.

p.s i checked the mark scheme. it is no help. as usual. i'm attaching the paper though

thank youuuuu

[abhia]

does a very high GDP per capita indicate a favorable balance of payments?

......not necessarily, right??

no, it doesn't necessarily,

because if theres alot of output produced in the country, there might also be other factors such as the country consumes all the output and not much left to export,

however, under the other conditions they have given you,
like if everything else is constant, then you can safely say that a high GDP per capita leads to a favourable balance of payments as more is exported.

you can also think about the fact that, even if a lot if produced within an economy, more might be imported from other economies, and if that import is greater than that export they are worse off producing,
the GDP per capita doesnt take into account imports

hope that helps.

[aangel42]

truetruetrue...

ok thank you! that makes sense

wait but wait, what do you mean by "if all other conditions remain constant"
like what other conditions?

[abhia]

for economics: can anyone help me out with M/J paper 6, question 1c.
i SUCK at drawing demand and supply graphs. how do you guys do it???
ahhh i'm hoping and praying we won't have to do one on paper 3 tmrw Sad i will end up screwing it. bigggg time.

p.s i checked the mark scheme. it is no help. as usual. i'm attaching the paper though

thank youuuuu

hello,

i've attached a demand and supply graph,

sorry im really bad at paint ,

basically this graph is showing a decrease in demand for it while the supply stays the same, keep in mind that shares never have a decrease in supply as it is fixed. The decrease in demand is showing that the Price has gone down,

hope this helps.

[coolperson123]

hello,

i've attached a demand and supply graph,

sorry im really bad at paint ,

basically this graph is showing a decrease in demand for it while the supply stays the same, keep in mind that shares never have a decrease in supply as it is fixed. The decrease in demand is showing that the Price has gone down,

hope this helps.

Ahhhh that makes sense. +rep

[abhia]

truetruetrue...

ok thank you! that makes sense

wait but wait, what do you mean by "if all other conditions remain constant"
like what other conditions?

basically, you dont have to place the fact that other conditions remain constant in your examination,
however keep in mind that all the goods and services produced at this moment must stay the same, and so you can determine the balance of payments and also imports. You can also argue that the inflation levels must stay the same because an increase in inflation would lead to a decrease in demand for exported goods and services which makes it less favourable. So keeping inflation levels stable, there are many other factors that you can argue with

Good luck if you have paper 3 tommorow ,
Just 1 advice, Dont use words like "could" or "should" or "would"

be confident to the examiner and use things like "this will lead too" or something along the lines of that.

[J.Darren]

does a very high GDP per capita indicate a favorable balance of payments?

......not necessarily, right??

Actually it does. GDP is calculated by the equation C + I + G + (X - M), X represents exports.

However in IGCSE they do not expect you to know this equation, so best if you stick with an overall surplus in the goods and service, income and current transfer accounts combined.

[abhia]

okaaaay so it's kind of like "substitution"? lol for lack of a better word
i mean ok so you're right it makes sense that supply is fixed, and they've told you that share prices went down, so it's like you have to figure out what CAUSED them to go down? and the only thing that could have is a decrease in demand.
right? is that how you figured it out?

By the way thank you!!!!!!!! +rep
good luck for tomorrowwww

i wouldnt really call it subsitution, but if that helps you understand it, i guess so.
By the way!! not every question has a fixed supply, sometimes you have to move the supply instead of the demand.

In this case the supply is fixed, because the only thing that is shifting is the demand.

as you can see on the graph the demand curve moves to the left so it decreases in demand.
you are showing the price as decreasing because

as you can see the first price line, is going down to the second price line showing a decrease in demand.

i've attached another graph for more clear understand i forgot to put this on the first graph sorry.

[Choc.Kits]

Hey guy. I need all the inserts for the paper 3's. I dont have any! can someone please direct me to a site or something. Thank you

[Mathewness]

How do we revisie for this? the paper 3s are messed up, theres no paper 3 for other years

Anyone know how to revise?

[Freaked12]

exam is exactly like other years but you have to write on the book let.Do some practise of these questions
(WHAT DO YOU NEED TO KNOW.....)
these are allocated the highest marks so it would be wise to do them.

[Freaked12]

exam is exactly like other years but you have to write on the book let.Do some practise of these questions
(WHAT DO YOU NEED TO KNOW.....)
these are allocated the highest marks so it would be wise to do them.

What is GDP per capita
I am not sure about this defination