Thursday 11 April 2013

Grade IX B and IX D Solve these questions and get it on Monday / Tuesday (Whenever is the Next class)


DEMAND WORKSHEET

1.      The law of demand states- when the price increases, the quantity demanded will ___________.
When the price decreases, the quantity demanded will _______________.

2.      If a change in price has an effect on the change in quantity, this is known as (elastic / inelastic) demand.  Give a specific example of this type of demand.

 3.      If the federal government says that fish is healthy for you, the demand for fish will
       (increase / decrease).  Which determinant of demand causes this change? _____________________
Which way will the demand curve shift?  (left / right)  Draw the new demand curve- Label it D1.

 4.      Economists announce that the unemployment rate will increase over the next six months.
The demand for new homes will (increase / decrease).   Which determinant causes this change? _____________________.   Which way will the demand curve shift?  (left / right)  Draw the new demand curve- Label it D2
5.      Give an example of diminishing marginal utility involving hamburgers.
 6.      Define and give an example of a complementary good.
 7.      Define and give an example of a substitute good.
  8.      The price of syrup increases, the demand for pancakes will (increase / decrease).
Which determinant causes this change? _________________________.
Which way will the demand curve shift?  (left / right)  Draw the new demand curve- Label it D3.
                                
9.      The price of airline tickets goes up, the demand for train tickets will (increase / decrease).
Which determinant causes this change? ___________________________    Which way will the demand curve shift?  (left / right)  Draw the new demand curve-Label it D4.

 10.  Provide a complement for the following items:
car- __________________           bread-__________________              shoes-_______________

11.  Provide a substitute for the following items:
car-___________________          pen-____________________             television-____________

12.  Using the demand schedule below, draw a demand curve.

Demand Schedule

        Price                    Quantity                                             
       $6.00                         6                                                    
       $5.00                         6
       $4.00                         6
       $3.00                         6



What type of demand curve is this? (elastic / inelastic)
Give an example of a good or service that would have this type of demand curve? ______________
 


13.  Plot the points for the demand curve and label the line D1.

Demand Schedule #1

Price                Quantity                     
$9.00                     1
$6.00                     3
$5.00                     4
$2.00                     6
$1.00                     7

 14.  
                                                                                            

Demand Schedule #2

Price                Quantity      
$9.00                    3
$8.00                    4           Use the graph above, plot the points for the new demand curve and
$5.00                    6            label it D2
$4.00                    7
$1.00                    9


15.  Does a shift from D1 to D2 reflect an increase or a decrease in demand? _________________

Monday 8 April 2013

Dear Students of Grade 10 B & 10 D,
This is your home work for next class ( Given on 9th April 2013)
I have already discussed Q1(a). Remaining questions you have to solve. I will appreciate if you can take the print of the same & stick it in your note book.
Here is the CASE:





Grade 10 D Solve this Questions & take a print !!!! get it in the next class



AS LEVEL QUESTIONS
November 2002-P3
7 Which organisation controls the banking system in most countries?
A central bank                         B commercial bank                  C investment bank                   D World Bank
November 2003-P1
9 What function do central banks and commercial banks have in common?
A acting as a banker's bank                                    B controlling monetary policy
C dealing with foreign exchange                             D supervising the banking system
November 2004-P3
4 Why do bank notes function as money?
A They are durable.                                B They are generally acceptable.                            C They count as legal tender.                 D They have intrinsic value.

8 To whom does the central bank usually make loans?
A individuals                            B limited companies                                C the government                   D trade unions
November 2006-P3
6 Why might a country’s central bank raise its interest rate?
A to encourage saving
B to increase the money supply
C to raise funds for the government
D to reduce the level of employmen
November 2007-P3
4 In wartime conditions, cigarettes have been used as money. What disadvantage do cigarettes have for trading compared with notes and coins?
A They cannot act as a medium of exchange.                                        B They have no intrinsic value.
C They lack durability.                                                                             D They make a double coincidence of wants necessary.

6 In most countries which organisation controls the banking system?
A central bank                                         B commercial bank
C investment bank                                   D World Bank
November 2008-P3
18 Why might a person buy ordinary shares on the stock exchange rather than put the money in a savings account?
A to earn a fixed income                                         B to gain a high return
C to keep money in a safe place                             D to start a company

A Level June 2003-P1
4 What is the most abundant form of money (measured by value) in a developed economy?
A bank deposits                       B cash                     C cheques                               D credit cards
A Level June 2008-P1
4 What is not an essential characteristic of money?
A It must have intrinsic value.                                  B It must be generally acceptable as a means of settling debts.
C It must serve as a unit of account.                       D It must be limited in supply.

Friday 5 April 2013


 Explain what is meant by a substitute good and a complementary good and give an example of each connected with oil. [4]
Ans : Different goods that, satisfy the same needs of the  consumer and, therefore, can be used to replace one another. Different goods & services that can be used to satisfy same needs or wants are called substitute goods. These goods can be replaced for each other. Example of substitute goods for oil is  CNG or Electricity.

When two or more goods are demanded together to satisfy a single needs or wants are called complementary goods. Example : Car & petrol, Car & Car accessories. 
FACTORS INFLUENCING DEMAND(Determinant of Demand):


The determinants of demand It is fairly obvious so far that the price of a good is a pretty strong determinant of its demand, but there are many other things that will affect demand too.
  1. Price of Goods: More quantity is demanded at a lower price & less quantity is demanded at a higher price. It means Price & quantity demand for goods are inversely related to each other.
  2. Real income. If one's real income rose the different goods & services also rose & vice versa.
  3. The price of Substitute goods. If the price of substitutes goods increases then demand for original goods also increases & vice versa. For example if price of Coca Cola increases then demand for Pepsi will also increases & vice versa.
  4. Tastes and preferences. Changing preferences will affect your demand for a product regardless of its price. If the product it at par of ones taste & preference then there will be more demand & vice versa.
  5. Expectations of future prices. If a person think that the price for a good is likely to fall in the near future, he may delay some purchases which will reduce demand in the current time period. Alternatively, he may feel that prices are likely to rise in the near future, so he may increase the demand in the current time period.
  6. Advertising. An effective advertisement create more demand in the market & vice versa.
  7. Population. Quite obviously, a significant rise in the number of people in a given area or country will affect the demand for a whole host of goods and services. Note that a change in the structure of the population (we have an ageing population) will increase the demand for some goods but reduce the demand for others.
  8. Interest rates and credit conditions. If interest rates are relatively low then it is cheaper to borrow money that can then be spent, so demand will increase but if interest rate increases then it will be costlier to borrow, hence the demand will decrease.  

Thursday 4 April 2013

Home Work for Grade IX D, (Date: 05/04/2013)


Each students should bring a news paper article about demand for any product. For instance:

Luxury goods demand may peak by 2015 By Bao Chang (China Daily)

Move over Japan. China is poised to become the world's largest luxury goods market in the next five to seven years, according to Boston Consulting Group in its latest survey of Chinese consumer trends released in Beijing yesterday.
"By 2015, 29 percent of global luxury product consumption will come from China, making it the world's largest luxury market," Vincent Lui, principal of Boston Consulting's Hong Kong office, said at a news conference yesterday.
China, which presently consumes about 25 percent of the world's luxury products, is the second largest luxury goods consumer after Japan, according to earlier reports.

The survey entitled "China's Luxury Market in a Post Land-Rush Era", surveyed more than 2,550 consumers across the country last year, of which 26 percent said they spent more on luxury items in 2009 than in 2008.
"Although Chinese consumers may continue to be somewhat cautious in their spending, they still aspire to own luxury brands," Lui told China Daily.

China's booming luxury goods market makes it an oasis of hope for global luxury brands, which are losing ground in other markets. At present, Shanghai and Beijing have as many luxury point-of-sale locations per capita as both New York and Chicago. Plus, the two Chinese cities have a slightly higher concentration of luxury watch outlets than other major city in the world.

For luxury purveyors, a big part of China's allure is the rapid pace of wealth accumulation.
At the end of 2008, China boasted 417,000 households each with a net worth of more than $1 million in assets under management, according to research by Boston Consulting and leading Chinese banks.
Boston Consulting also pointed out that this category is expanding quickly and is expected to top 609,000 households by the end of 2011.

Although still small in relation to the overall population of China, the nation's high-net-worth category is larger than that of many affluent countries such as France and the United Kingdom.
The majority of China's luxury store locations roughly mirrors the distribution of wealth in China, and are concentrated along the coast with Shanghai, as well as Guangdong and Shandong provinces boasting the highest number of wealthy households.

However, as wealth spreads from the large coastal cities to smaller cities inland, luxury goods retailers have followed in a land rush for key locations in some second-tier cities such as Harbin and Shenyang. 

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