ECONOMICS Theory (1) (a)TABULATE -PRICE-QTY Year:1984,1986 Px:60,70 Qty:170,90 % change in Qd=change in Qd/ old Qd*100 170-90/170*100 80/170*100 =47.05% %change in price=change in price/old price*100 =70-60/60*100 =10/60*100 =16.66% (b)Coefficient=47.05/16.66 =2.824 (c)Elasticity of demand is 2 it is elastic because it is greater than 1 (3) -Rational decision: economics enables the individuals to choose certain want among the numerous needs using their scarce resources -Maximization of profits: it enables traders and businessmen to maximize their profit using economics principles in their business - Satisfaction of wants: the study of economics helps us to utilise the principles of choice,opportunity cost,scale of preference etc in order to satisfy human wants - Participation in government: the understanding of economics helps individuals to participate actively in the art of governance -Allocation of resources: the study of economics enables the government to allocate scarce resources to various sectors of the economy -Preparation budget: economist assist the government to determine the expected income and expenditure of a country.*********
Posted on: Wed, 09 Jul 2014 11:26:10 +0000
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