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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?

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  1. sheg
    • 3 years ago
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    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
    • 3 years ago
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    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
    • 3 years ago
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    and income elasticity of demand

  4. sheg
    • 3 years ago
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    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
    • 3 years ago
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    \[Income Elasticity of Demand = \frac{percent chage i n quantity demanded}{percent change i n income level}\]

  6. sheg
    • 3 years ago
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    from this u can find out the quantity demanded

  7. sheg
    • 3 years ago
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    i was actually trying to explain the relation between income and demand

  8. angela210793
    • 3 years ago
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    Oh..............I think I got it.....Thanks ^_^

  9. sheg
    • 3 years ago
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    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
    • 3 years ago
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    in which semester?

  11. angela210793
    • 3 years ago
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    1st semester ,1st year X)

  12. sheg
    • 3 years ago
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    ok..microeconomics

  13. angela210793
    • 3 years ago
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    yes...i like it a lot :)

  14. sheg
    • 3 years ago
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    yeah very interesting subject i like macroeconomics not microeconomics

  15. angela210793
    • 3 years ago
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    just finished micro will start macro on wednesday :) wht r u studying?

  16. sheg
    • 3 years ago
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    m not student

  17. angela210793
    • 3 years ago
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    oh ok...wht have u studied then?

  18. sheg
    • 3 years ago
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    Same thing which u r studying right now

  19. angela210793
    • 3 years ago
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    business administration?

  20. sheg
    • 3 years ago
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    yeah

  21. sheg
    • 3 years ago
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    what specialization u want to opt

  22. angela210793
    • 3 years ago
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    Idk....I think i got some time to think abt it...I've heard accounting is good...idk though

  23. angela210793
    • 3 years ago
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    wht's ur spec?

  24. sheg
    • 3 years ago
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    if u want to opt for finance then it is good because for finance u need a strong quant base

  25. sheg
    • 3 years ago
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    from my reply it must be clear^^^^^^^^^^^^^^^^^

  26. angela210793
    • 3 years ago
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    aha i got it ^^......hmmmmmm.....and,,,wht do u exactly do in finance?

  27. angela210793
    • 3 years ago
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    Researcher??? O.o...marketing??? O.o

  28. angela210793
    • 3 years ago
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    I'm sorry for my ignorance :/ but I've heard research only in marketing till now :/ sorry....wht do u search for??

  29. angela210793
    • 3 years ago
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    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
    • 3 years ago
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    Wow....lucky you :):) I wish I can have the same luck ^^ How old r u?

  31. sheg
    • 3 years ago
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    actually i dont want to disclose my identity

  32. sheg
    • 3 years ago
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    so nvr use my actual name on these kind of websites......sorry for that

  33. angela210793
    • 3 years ago
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    Ok.....I'm sorry....

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