Well the forumula for Xped is the percentage change in quantity demanded of good Y divided by the percentage change in price of good X. If the Cross price elasticity of demand is negative then they are complementary goods, meaning that they are consumed together. Therefore a fall in price of good X will mean an increase in demand for good Y, so the answer is A.
Guys, when drawing diagrams in the exam tommorow how big do we make them? I was told half a page by my teacher,but what if I want to put in a diagram in the 12 marker and 3 diagrams in the 25 marker? Also, do we use pen or pencil?
Guys, when drawing diagrams in the exam tommorow how big do we make them? I was told half a page by my teacher,but what if I want to put in a diagram in the 12 marker and 3 diagrams in the 25 marker? Also, do we use pen or pencil?
Big enough. Half a page is too big.
Use pencil - it doesn't really matter, it all gets scanned and shows up perfectly.
Well the forumula for Xped is the percentage change in quantity demanded of good Y divided by the percentage change in price of good X. If the Cross price elasticity of demand is negative then they are complementary goods, meaning that they are consumed together. Therefore a fall in price of good X will mean an increase in demand for good Y, so the answer is A.
ohh thanks, why does market failure arise when positive externalities exist in consumption? isnt that a good thing
ohh thanks, why does market failure arise when positive externalities exist in consumption? isnt that a good thing
to little is consumed or too little is produced because the individual doesn't take into account the external benefits involved in consumption of the merit good. the individual only takes into account the private benefits which is less than the socially accepted quantity of output.
for the definitions write out everything you know about it-- i dont mean like a paragraph but a couple of lines. for example, define negative externalities
you know they are over consumed because they are bad for health also affect other individuals (third party) consumers do not understand the external costs involved- information failure
state a few examples such as smoking, alcohol, pollution. that should do it. you dont need an exact word for word text book definition.
another example, define efficiency
you can something alongs the lines of the quantity of units of goods/serviced produced by a certain individual over a certain period of time such as one hour. for example the quantity of exam papers marked by a examiner in an one hour period. its is measured as a numerical value.
Cheers how would you define optimum output? is that the same as effiency?
Cheers how would you define optimum output? is that the same as effiency?
In terms of externalities the optimum output is the output which takes the full cost into account. In the case of negative externalities, optimum output is lower, and for positive externalities it is higher. It is essentially just the output level which results in the best outcome for society.
In terms of externalities the optimum output is the output which takes the full cost into account. In the case of negative externalities, optimum output is lower, and for positive externalities it is higher. It is essentially just the output level which results in the best outcome for society.
Assess the ways that the consumption of cigarettes can be reduced.