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    will some1 help me over this i m totally new to econmics so i m finding really difficulty in answring this Q

    "Discussthe practicle usefulness of the concepts of elasticities of the producers producing (a) mobile phones (b) wheat
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    (Original post by CorpusNinja)
    You can't assume markets will fail. Perhaps you can refer to the market structure of housebuilders, oligopoly, monopoly etc. and relate that the probability of market domination by a few firms. Secondly, allocative efficiency is not achieving the lowest possible prices, but producing what people demand. What you have talked about is productive efficiency.

    Given that there remains a certain degree of competition in the market, there is always an incentive to produce at the lowest cost. But the quality monitoring issue might be a valid point.


    I think Brown already started something like this a while back. Maybe you could find out what this scheme was called (if it even exists!)

    Generally fine.

    Thanks alot for your help. As this was my first attempt at answering a data response question I thought I'd done badly, but you've given me that confidence booster. Thanks again.
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    Can anyone help me with this question?

    "Evaluate the effects of trade protection on developing countries."
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    Why would a certain level of income have to be reached by a country in order to make the switch to a more market based system more viable?
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    Despite the credit crunch, why is it that national output still grew by such a fast rate in the third quarter in the UK? I've read that consumers have still been spending and that house prices have still been up despite a slight dip in October, but why is this?
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    I know that my question is really stupid one , but since I am an idiot with "economics" I need help!!

    "State and explain the 5 properties of a supply curve."

    Can anyone help? Until now I just got two properties ...
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    (Original post by El Mariachi)
    Despite the credit crunch, why is it that national output still grew by such a fast rate in the third quarter in the UK? I've read that consumers have still been spending and that house prices have still been up despite a slight dip in October, but why is this?
    Because the full effects of the crisis are yet to hit the consumers via higher mortgage and loan rates. Then we will most likely observe a slowdown in spending etc. Most are hoping that is after Christmas though...
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    quick question

    oligopoly, i get why the demand curve is 'kinked' but can someone explain why the gap within the MR curve exists? (i.e. MR meets MC but then there's a gap and MR meets MC at another place. (shown below)) is it just meant to represent a shift in MR DUE TO MC shifting?

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    In 2000, the price of a barrel of crude oil rose from $10 to over $35. In the same year the sales revenues of oil companies, such as Shell & BP, increased significantly. This suggests that the price elasticity of demand for oil is:

    A) Elastic and positive

    B) Inelastic and positive

    C) Elastic and negative

    D) Inelastic and negative

    I dont know :bawling:

    Can anyone help please? Thanks in advance
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    (Original post by Vesta)
    In 2000, the price of a barrel of crude oil rose from $10 to over $35. In the same year the sales revenues of oil companies, such as Shell & BP, increased significantly. This suggests that the price elasticity of demand for oil is:

    A) Elastic and positive

    B) Inelastic and positive

    C) Elastic and negative

    D) Inelastic and negative

    I dont know :bawling:

    Can anyone help please? Thanks in advance
    PED = change in quantity demanded / change in price

    An increase in price tends to cause a fall in quantity demanded, so PED is negative for normal goods.
    If it is inelastic, an increase in price causes a smaller fall in quantity demanded, leading to higher revenue.

    From the information, you can tell that the PED of oil is inelastic (as revenue has increased significantly with an increase in price) but I'm not sure that you can conclude that less has been demanded...

    So although I think the PED of oil should be negative and inelastic, from the information it might be arguable that it is positive and inelastic... (maybe due to speculation)

    I'm not sure about this one either. :confused:
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    (Original post by alex_hk90)
    PED = change in quantity demanded / change in price

    An increase in price tends to cause a fall in quantity demanded, so PED is negative for normal goods.
    If it is inelastic, an increase in price causes a smaller fall in quantity demanded, leading to higher revenue.

    From the information, you can tell that the PED of oil is inelastic (as revenue has increased significantly with an increase in price) but I'm not sure that you can conclude that less has been demanded...

    So although I think the PED of oil should be negative and inelastic, from the information it might be arguable that it is positive and inelastic... (maybe due to speculation)

    I'm not sure about this one either. :confused:
    Thanks
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    (Original post by alex_hk90)
    PED = change in quantity demanded / change in price

    An increase in price tends to cause a fall in quantity demanded, so PED is negative for normal goods.
    If it is inelastic, an increase in price causes a smaller fall in quantity demanded, leading to higher revenue.

    From the information, you can tell that the PED of oil is inelastic (as revenue has increased significantly with an increase in price) but I'm not sure that you can conclude that less has been demanded...

    So although I think the PED of oil should be negative and inelastic, from the information it might be arguable that it is positive and inelastic... (maybe due to speculation)

    I'm not sure about this one either. :confused:
    i thought PED was ALWAYS negative

    which goods have a positive PED?:confused:
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    (Original post by riux)
    i thought PED was ALWAYS negative

    which goods have a positive PED?:confused:
    It's almost always negative.
    But in some cases it can be positive (quantity demanded rises as price rises), due to speculation or 'snob value'.
    Examples to demonstrate this:
    - if the price of shares in a particular company rises, demand for those shares might also rise in a given time period
    - if the price of a certain artists' piece of work rises, the demand for all that artists' pieces might also rise
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    (Original post by alex_hk90)
    It's almost always negative.
    But in some cases it can be positive (quantity demanded rises as price rises), due to speculation or 'snob value'.
    Examples to demonstrate this:
    - if the price of shares in a particular company rises, demand for those shares might also rise in a given time period
    - if the price of a certain artists' piece of work rises, the demand for all that artists' pieces might also rise
    oh i see. good point thankyou
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    From the financial markets p.o.v., should interest rates be increased or lowered?
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    (Original post by CorpusNinja)
    Because the full effects of the crisis are yet to hit the consumers via higher mortgage and loan rates. Then we will most likely observe a slowdown in spending etc. Most are hoping that is after Christmas though...
    Ahh of course! Hmm that's quite interesting, would not be good if it was during Christmas, and that would have a very bad impact on my bonus at John Lewis!
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    I know this isnt exactly A Level but i dont seem to be getting responses elsewhere..
    Any feedback here would be much appreciated! This is one topic where i just end up in circles!!
    Utility function is u(x,y)=x·(y+6) where x and y are goods consumed per week.
    This week L has consumed 8 of x and 2 of y.
    (a) Draw the indifference curve that passes through this bundle.
    (b) What is the slope of L's indifference curve at this point?

    Thanks in advance!
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    (Original post by Vivacious_Sky)
    I know this isnt exactly A Level but i dont seem to be getting responses elsewhere..
    Any feedback here would be much appreciated! This is one topic where i just end up in circles!!
    Utility function is u(x,y)=x·(y+6) where x and y are goods consumed per week.
    This week L has consumed 8 of x and 2 of y.
    (a) Draw the indifference curve that passes through this bundle.
    (b) What is the slope of L's indifference curve at this point?

    Thanks in advance!
    a) standard IC going through 8,5 plotted in x,y space. if you want to be really accurate, just go to excel and use three columns. the first with x from 1 to 20. the second with y = (100/x)-6 and the third with utility = x(y+6) and this should give you an indifference curve such that utility is always 100.

    b) differentiate u(x.y) partially with respect to x and then y. the slope is simply MUx/MUy (the ratio of the partial derivatives). Here it should be y+6/x
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    (Original post by CorpusNinja)
    a) standard IC going through 8,5 plotted in x,y space. if you want to be really accurate, just go to excel and use three columns. the first with x from 1 to 20. the second with y = (100/x)-6 and the third with utility = x(y+6) and this should give you an indifference curve such that utility is always 100.

    b) differentiate u(x.y) partially with respect to x and then y. the slope is simply MUx/MUy (the ratio of the partial derivatives). Here it should be y+6/x


    Why would the second column be (100/x)-6?
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    (Original post by Vivacious_Sky)
    Why would the second column be (100/x)-6?
    I just rearranged the utility function to make y the subject. You want to keep utility constant (100 in my example - but you can choose any number!) and see how y changes for a unit change in x.
 
 
 
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