Eco401 GDB Idea solution

[mc090402659 Mobeen Aslam]

the price elasticity of demand :

Price elasticity of demand is the percentage change in quantity demanded with respect to the percentage change in price

Increase in the price of motor vehicle will cause fall in the  oil demand the curve will shift  leftwards.

[mc100402808 Yousaf Aslam]

So good

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[mc090405929 Muhammad Shoaib]

not that  soooooooo gud.

[●●Binish_Awais●●]

 ECO401 IDEA BY ASAD MUNIR 

Consider the markets of motor vehicles and fuel oil. If price of motor vehicles rises, what will happen to the demand of fuel oil? In which direction the demand curve for fuel oil will shift with a rise in price of motor vehicles?

Answer:

Fuel Oil Demand will fall and its curve will shift to Left reflecting decrease.

            ●●Gяєу_Fєяяy ●●
Mo00∂y _∂oll

[cooolstar]

GHALAT .. bilkul ghalat ..

:)

with best regards,

 

fawad

(cooolstar)

MBA - Marketing - 4th semester- Lahore

 

 

.

 

[Ashu]

Wrong answer Mr....X

[mc090402659 Mobeen Aslam]

O When the price of motor vehicle increases it will decrease the demand of fuel oil. The demand of motor vehicle and fuel oil are directly related to each other. So when the demand of motor vehicle decreases due to increase in price, it leads to decrease in demand of fuel oil.

Now how it affects the fuel oil demand curve. The answer behind is that when the motor vehicle price increases it shifts the demand curve of the fuel oil to the left side.

[cooolstar]

 

RIGHT ANSWER, Mobeen and Binish

 

extremely sorry guys mein ne kal question ghor se nahi perha tha ..

On Thu, Apr 28, 2011 at 11:57 PM, mc090402659 Mobeen Aslam <mc090...@vu.edu.pk> wrote:

O When the price of motor vehicle increases it will decrease the demand of fuel oil. The demand of motor vehicle and fuel oil are directly related to each other. So when the demand of motor vehicle decreases due to increase in price, it leads to decrease in demand of fuel oil.

Now how it affects the fuel oil demand curve. The answer behind is that when the motor vehicle price increases it shifts the demand curve of the fuel oil to the left side.

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[Amir Yousafi]

To explain the difference further, people will buy less fuel oil at the same price whereas they're only buying less vehicles because the price has risen.

Regards,
Amir Yousafi
BSc. 2-Year (2nd Semester)

On Sat, Apr 30, 2011 at 12:03 PM, Amir Yousafi <bc100...@vu.edu.pk> wrote:

Yes, that is the correct answer and it is what I put in the GDB, but it is not complete.  One more point has to be added, which is that the demand for motor vehicles should not be considered to decrease because the price increased; the reason is because it's actually the quantity demanded decreasing, which should be contrasted with demand decreasing.  "Demand changing" is a "shift in the demand curve" whereas "Quantity demanded changing" is "moving along demand curve".

The quantity demanded of motor vehicles decreased because of price increases whereas the demand for fuel oil decreased because people simply had less of a need for it.

Regards,
Amir Yousafi
BSc. 2-Year (2nd Semester)

[Amir Yousafi]

Yes, that is the correct answer and it is what I put in the GDB, but it is not complete.  One more point has to be added, which is that the demand for motor vehicles should not be considered to decrease because the price increased; the reason is because it's actually the quantity demanded decreasing, which should be contrasted with demand decreasing.  "Demand changing" is a "shift in the demand curve" whereas "Quantity demanded changing" is "moving along demand curve".

The quantity demanded of motor vehicles decreased because of price increases whereas the demand for fuel oil decreased because people simply had less of a need for it.

Regards,
Amir Yousafi
BSc. 2-Year (2nd Semester)

On Fri, Apr 29, 2011 at 9:45 AM, cooolstar <cooo...@gmail.com> wrote: