help needed for Econmoices
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Originally posted by alvin-ncs:
haix...i know i know,
problem is that even i can get the answer, i still dont understand the question and answer...
i just find it hard to understand the terms from books/notes/or net...
i'm just asking for a simple term, i'm sry ok?
So which part of the definitions do you not understand?
How about this?
Price elasticity of demand is defined as the measure of responsiveness in the quantity demanded for a commodity as a result of change in price of the same commodity. It is a measure of how consumers react to a change in price. In other words, it is percentage change in quantity demanded as per the percentage change in price of the same commodity.
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Originally posted by alvin-ncs:
haix...i know i know,
problem is that even i can get the answer, i still dont understand the question and answer...
i just find it hard to understand the terms from books/notes/or net...
i'm just asking for a simple term, i'm sry ok?
yau follow what deepak has said.
u type out what u think the definitions are.
without referring to any source.
dont cheat hor.
this kind u cheat oso no use one
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Originally posted by eagle:
So which part of the definitions do you not understand?
How about this?
Price elasticity of demand is defined as the measure of responsiveness in the quantity demanded for a commodity as a result of change in price of the same commodity. It is a measure of how consumers react to a change in price. In other words, it is percentage change in quantity demanded as per the percentage change in price of the same commodity.
wat i remember from wat i learn is that "price elasticity of demand is to measure how much the quantity demanded of the product is to change the price of the product..."
but even if i can remember this, i can seems to understand the meaning of it....
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Originally posted by deepak.c:
In your own words,
Explain inflation?
ok...i dont know if its right or wrong...
does it means that price will change due to the time, example the money value drop, last time meepok 50cent, but now 3 dollar...and last time 50cent = now $3...
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or is there a more simple & better way to explain?
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Originally posted by alvin-ncs:wat i remember from wat i learn is that "price elasticity of demand is to measure how much the quantity demanded of the product is to change the price of the product..."but even if i can remember this, i can seems to understand the meaning of it....
This is better. Next time at least say what u have learned and where did u stop understanding...
Let me try to explain in very basic E maths, cannot be used for your essays one hor...
You have learned what is a y=-x curve. In econs, y is the price, and x is the quantity demanded, something similar... just that the curve is shifted, i.e. y=-x+5
So, in that sense, elasticity of demand is something like the gradient. It is always in negative, because it is downward sloping. But it is nearly similar only, not totally the same hor... Just some tips for linkage...
When the elasticity is -1, it is unitary elastic. Means every change in price will result in an equally proportional change in quantity demanded.
Then the main gist here is about elasticity.
Value Meaning n = 0 Perfectly inelastic. −1 < n < 0 Relatively inelastic. n = −1 Unit (or unitary) elastic. −∞ < n < −1 Relatively elastic. n = −∞ Perfectly elastic. Elastic means a price change will result in a lot a lot more change in quantity demanded. E.g. $1 increase in price will result in 2 less pple buying.
Then if even more elastic, $1 increase in price will result in 4 less pple buying
Perfectly elastic, $1 increase in price will result in 0 pple buying.
Example graph for perfectly elastic:
Similar for decrease in price.
Read your textbook for this part on how to use graphs to draw and show.
Inelastic means a price change will result in a lot a lot less change in quantity demanded. E.g. $1 increase in price will result in almost the same number pple buying. Means things that no choice, you still have to use. Example in Singapore would be... increase in bus fares or mrt fares, you still have to take it. Increase in prices of newspaper, increase in prices of cigarettes... The quantity demanded wouldn't change much no matter you increase or decrease the prices!
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TS needs an econs teacher like master to patiently teach him economics.
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Originally posted by eagle:
This is better. Next time at least say what u have learned and where did u stop understanding...
Let me try to explain in very basic E maths, cannot be used for your essays one hor...
You have learned what is a y=-x curve. In econs, y is the price, and x is the quantity demanded, something similar... just that the curve is shifted, i.e. y=-x+5
So, in that sense, elasticity of demand is something like the gradient. It is always in negative, because it is downward sloping. But it is nearly similar only, not totally the same hor... Just some tips for linkage...
When the elasticity is -1, it is unitary elastic. Means every change in price will result in an equally proportional change in quantity demanded.
Then the main gist here is about elasticity.
Value Meaning n = 0 Perfectly inelastic. −1 < n < 0 Relatively inelastic. n = −1 Unit (or unitary) elastic. −∞ < n < −1 Relatively elastic. n = −∞ Perfectly elastic.
Elastic means a price change will result in a lot a lot more change in quantity demanded. E.g. $1 increase in price will result in 2 less pple buying.
Then if even more elastic, $1 increase in price will result in 4 less pple buying
Perfectly elastic, $1 increase in price will result in 0 pple buying.
Example graph for perfectly elastic:
Similar for decrease in price.
Read your textbook for this part on how to use graphs to draw and show.
Inelastic means a price change will result in a lot a lot less change in quantity demanded. E.g. $1 increase in price will result in almost the same number pple buying. Means things that no choice, you still have to use. Example in Singapore would be... increase in bus fares or mrt fares, you still have to take it. Increase in prices of newspaper, increase in prices of cigarettes... The quantity demanded wouldn't change much no matter you increase or decrease the prices!
ok...sry that i just remember that, hmmm....i dont understand this part...
"Value Meaning n = 0 Perfectly inelastic. −1 < n < 0 Relatively inelastic. n = −1 Unit (or unitary) elastic. −∞ < n < −1 Relatively elastic. n = −∞ Perfectly elastic."
&
if there is perfect elasticy, is it good or bad...
sry to ask so much basic questions, as i this is my first time learning this...
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Originally posted by charlize:
TS needs an econs teacher like master to patiently teach him economics.
sry about that...
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alvin..pm me ur msn..later tonight there will be a tete-a-tete between us ok
or u can buy my book
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Originally posted by alvin-ncs:
sry about that...
Aiya, I teach you easy way of remembering whether a dd or ss graph is PERFECTLY elastic or inelastic.
If the graph is a horizontal line like the one above in this page, visualize an infinity sign ∞ below it, it is a perfectly elastic dd or ss curve.
If the graph is a vertical line, visualize a long elongated 0 beside the line, it is a perfectly inelastic dd or ss curve.
Understand?
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Originally posted by charlize:
Aiya, I teach you easy way of remembering whether a dd or ss graph is PERFECTLY elastic or inelastic.
If the graph is a horizontal line like the one above in this page, visualize an infinity sign ∞ below it, it is a perfectly elastic dd or ss curve.
If the graph is a vertical line, visualize a long elongated 0 beside the line, it is a perfectly inelastic dd or ss curve.
Understand?
@_@
wat is dd & ss?
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What other things you need explanation for?
I try to explain to you in non textbook methods.
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Originally posted by alvin-ncs:
@_@
wat is dd & ss?
Dd - demand. Ss - supply.
Remember them.
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Originally posted by alvin-ncs:
@_@
wat is dd & ss?
demand and supply
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Originally posted by charlize:
What other things you need explanation for?
I try to explain to you in non textbook methods.
thanks...=)
so wats exchange rate?
still got floating/fixed...
dont tell me they can float on air...
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Originally posted by alvin-ncs:
thanks...=)
so wats exchange rate?
still got floating/fixed...
dont tell me they can float on air...
Floating means can move freely lor. Most major currencies are floating. Example, SGD to MYR. Yesterday, the rate could be 1 : 2.38. But today, the rate can be at 1 : 2.40. tomorrow it could be 1 : 2.39. ie it can move freely depending on what the market thinks the currency is worth.
Fixed means fixed lor. Last time, Ringgit was pegged to USD at a fixed rate of 1 to 3.8. Means no change regardless whether President Bush kpkb or not. You want to change ringgit for USD, that is the rate, no exceptions. Don't care if you the US president or not.
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Knn, exchange rate also don't know.
You never change money to go JB for cheap shopping?
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exchange rate u dunno ah
u go money changer
u see 1 sgd = 2.xx ringgit.
that is the exchange rate.
to float means to let the market decide the value of the currency
like if many people wan buy ringgit, naturally ringgit will become more valuable.
why? becuz got less ringgit on the market liao.
on the other hand, becuz pple buy ringgit with sgd, more sgd on the market, so less valuable, therefore value of sgd drops against ringgit.
fix is no matter how much u wan buy, gahmen say 1 sgd = 2ringgit means 1 sgd= 2ringgit.
i hope i correct sia.
if wrong i damn malu.
lol
wah. charlize post agar agar the same as mine.
lol
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Originally posted by alvin-ncs:
ok...sry that i just remember that, hmmm....i dont understand this part...
"Value Meaning n = 0 Perfectly inelastic. −1 < n < 0 Relatively inelastic. n = −1 Unit (or unitary) elastic. −∞ < n < −1 Relatively elastic. n = −∞ Perfectly elastic."
&
if there is perfect elasticy, is it good or bad...
sry to ask so much basic questions, as i this is my first time learning this...
Ask questions like this is ok... better than your first attempt...
Whether perfect elasticity is good or bad depends on the goals... Of course if you are the government, and you want to increase taxes on certain products, you will choose very very price inelastic materials like cigarettes to do so....
But for the consumers, perfect elasticity might be good because it means most likely sellers wouldn't increase price as it would lead to them being unable to sell the products...
Econs is common sense ;)
But then hor, you have to use this topic with market structures to fully understand and appreciate it...
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The reason why he doesn't understand is you all give him too much information.
And you all explain to him like a teacher to a student.
Simplify.
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Originally posted by eagle:
Ask questions like this is ok... better than your first attempt...
Whether perfect elasticity is good or bad depends on the goals... Of course if you are the government, and you want to increase taxes on certain products, you will choose very very price inelastic materials like cigarettes to do so....
But for the consumers, perfect elasticity might be good because it means most likely sellers wouldn't increase price as it would lead to them being unable to sell the products...
Econs is common sense ;)
But then hor, you have to use this topic with market structures to fully understand and appreciate it...
ok...next time i will just ask questions...LOL
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Originally posted by charlize:
Knn, exchange rate also don't know.
You never change money to go JB for cheap shopping?
got la...but everytime when i change, i didnt care about the rate or watever it is...
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But it's definitely easier to explain in person and through pictures and graphs.
You'd be better off looking for someone to explain to you in person.
Typing out 100 word explanations in a forum is a pain in the arse.
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Master,
Can teach me what is substitution effect, income effect and Giffen good?
