angela210793
  • angela210793
suppose that demand's elasticity for cars in USA=2.5 and in UK=3 If in the next year the incomes of USA grow with 2% and in UK with 1% wht will be the effect in Qd in both countries?
Economics - Financial Markets
katieb
  • katieb
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anonymous
  • anonymous
See as the income level of both the countries is increasing then people will have more money to spend that is their desire will get converted into demand ( with extra amount to spend). Thus, such people who do not possess car will purchase car and those who already possess car will try to buy cars which will be better than the car they possess.
angela210793
  • angela210793
my teacher did smth like |dw:1322932310482:dw| i didn't get...do these show the increase of Qd of USA and UK?
anonymous
  • anonymous
and income elasticity of demand

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anonymous
  • anonymous
see this equation is for income elasticity of demand..........i was telling it u in words......... If the demand decreases for cars it means that it is inferior good...........and if it demand increases it means that it is a superior good
anonymous
  • anonymous
\[Income Elasticity of Demand = \frac{percent chage i n quantity demanded}{percent change i n income level}\]
anonymous
  • anonymous
from this u can find out the quantity demanded
anonymous
  • anonymous
i was actually trying to explain the relation between income and demand
angela210793
  • angela210793
Oh..............I think I got it.....Thanks ^_^
anonymous
  • anonymous
so they are directly proportional to each other as the income increases the demand of inferior goods goes down and as income increases the demand of superior goods increases
anonymous
  • anonymous
in which semester?
angela210793
  • angela210793
1st semester ,1st year X)
anonymous
  • anonymous
ok..microeconomics
angela210793
  • angela210793
yes...i like it a lot :)
anonymous
  • anonymous
yeah very interesting subject i like macroeconomics not microeconomics
angela210793
  • angela210793
just finished micro will start macro on wednesday :) wht r u studying?
anonymous
  • anonymous
m not student
angela210793
  • angela210793
oh ok...wht have u studied then?
anonymous
  • anonymous
Same thing which u r studying right now
angela210793
  • angela210793
business administration?
anonymous
  • anonymous
yeah
anonymous
  • anonymous
what specialization u want to opt
angela210793
  • angela210793
Idk....I think i got some time to think abt it...I've heard accounting is good...idk though
angela210793
  • angela210793
wht's ur spec?
anonymous
  • anonymous
if u want to opt for finance then it is good because for finance u need a strong quant base
anonymous
  • anonymous
from my reply it must be clear^^^^^^^^^^^^^^^^^
angela210793
  • angela210793
aha i got it ^^......hmmmmmm.....and,,,wht do u exactly do in finance?
angela210793
  • angela210793
Researcher??? O.o...marketing??? O.o
angela210793
  • angela210793
I'm sorry for my ignorance :/ but I've heard research only in marketing till now :/ sorry....wht do u search for??
angela210793
  • angela210793
OMG!!! I feel like I'm the most ignorant person in the whole world :(:(:( So we can talk at least after I've finished 1st year :P:P is it this? http://www.citibank.com/corpbank/wwss/agency/pf.htm ?? Future plans.....My grades average of 3 years must be +9/10 so tht I can apply for masters scholarships somewhere out of Albania(whr i am from) ^^
angela210793
  • angela210793
Wow....lucky you :):) I wish I can have the same luck ^^ How old r u?
anonymous
  • anonymous
actually i dont want to disclose my identity
anonymous
  • anonymous
so nvr use my actual name on these kind of websites......sorry for that
angela210793
  • angela210793
Ok.....I'm sorry....

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