angela210793 3 years ago 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?

1. sheg

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.

2. angela210793

my teacher did smth like |dw:1322932310482:dw| i didn't get...do these show the increase of Qd of USA and UK?

3. sheg

and income elasticity of demand

4. sheg

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

5. sheg

$Income Elasticity of Demand = \frac{percent chage i n quantity demanded}{percent change i n income level}$

6. sheg

from this u can find out the quantity demanded

7. sheg

i was actually trying to explain the relation between income and demand

8. angela210793

Oh..............I think I got it.....Thanks ^_^

9. sheg

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

10. sheg

in which semester?

11. angela210793

1st semester ,1st year X)

12. sheg

ok..microeconomics

13. angela210793

yes...i like it a lot :)

14. sheg

yeah very interesting subject i like macroeconomics not microeconomics

15. angela210793

just finished micro will start macro on wednesday :) wht r u studying?

16. sheg

m not student

17. angela210793

oh ok...wht have u studied then?

18. sheg

Same thing which u r studying right now

19. angela210793

20. sheg

yeah

21. sheg

what specialization u want to opt

22. angela210793

Idk....I think i got some time to think abt it...I've heard accounting is good...idk though

23. angela210793

wht's ur spec?

24. sheg

if u want to opt for finance then it is good because for finance u need a strong quant base

25. sheg

from my reply it must be clear^^^^^^^^^^^^^^^^^

26. angela210793

aha i got it ^^......hmmmmmm.....and,,,wht do u exactly do in finance?

27. angela210793

Researcher??? O.o...marketing??? O.o

28. angela210793

I'm sorry for my ignorance :/ but I've heard research only in marketing till now :/ sorry....wht do u search for??

29. 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) ^^

30. angela210793

Wow....lucky you :):) I wish I can have the same luck ^^ How old r u?

31. sheg

actually i dont want to disclose my identity

32. sheg

so nvr use my actual name on these kind of websites......sorry for that

33. angela210793

Ok.....I'm sorry....

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