Saturday, May 2, 2009

Elasticities: an oldie but goodie

May 11 and 12 are approaching pretty fast! I hope you are calm and and cool. I haven't seen you for a while but I've had several emails (Alex, Fro, M-N and others) which clearly suggest what I already know. That you are a bright and able bunch and that you know what to do to defend your interests, academic and broader.

I'm adding on our wiki some ideas on an 'easy' long essay.

Long essays on price/ income and cross price elasticities are not that common but they are usually a piece of cake. So easy, that many candidates get confused or do not remember the issues as they never paid much attention to the topic while revising.

I decided to jot down some pointers on this old Higher Level long essay that has also been asked in Standard Level exams. These pointers can be found here at our wiki.

This is the essay:
a) Carefully explain what is it that price, income and cross elasticities of demand are meant to measure. (10)
(b) Discuss the practical importance of the concept of price elasticity of demand for
(i) business organizations
(ii) the government (15)

Hope these pointers help...

Keep on walking...

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