Any Economist Singhs

[DhadiMania]

Sadh Sangat Ji i need help on a tutorial q which has made me think for the last 2 hours...WHA!!??

This is the Q

Why is it the case that if one good bought by a consumer has an income elasticity of demand greater than 1, then at least one good must have an income demand elasticity less than 1?

please can someone help me

any links to where i can find the answer?

[gurjant_singh]

singh try

tutor2u.net or

bized.co.uk

[DhadiMania]

nope, nothing. tutor2u is actually aimed at AS/A2. bized was very basic, doesnt cover elasticity.

anyone else?

[venividivici]

Sadh Sangat Ji i need help on a tutorial q which has made me think for the last 2 hours...WHA!!??

This is the Q

Why is it the case that if one good bought by a consumer has an income elasticity of demand greater than 1, then at least one good must have an income demand elasticity less than 1?

please can someone help me

any links to where i can find the answer?

I dont have a lot of economics experience but im in a business major, from the best of my knowledge, the answer to the question is the concept of equilibrium. For a market be in complete equilibrium the quantity demanded must equal the quantity supplied. As a result, to keep the market at equilibrium, the income elasticity of all goods in general must be equal to one. Accordingly, if one good has an income elasticy of demand over one, one or more other goods must have an income elasticity of less than one to bring the general income elasticity back to one. Therefore equilibrium is achieved and the demand and supply remain equal.

im not 100% sure of the answer but i guess somebody can verify it?

[DhadiMania]

thank you very much!

[Menu Ke Patha]

thank you very much!

bhai!!!

helpp lol..

im in 2nd yr of alevels.. nd lookin to economics @ uni..

but i reli wanna do economics nd politics but being advised against it by ma bro who does economics @ royal hollaway..

is politics a good course on its ownn??

[Sohan_Su]

i think if you do economics, i would prob say rab bhala kare. I actually do something quite similiar to HGM, i do economics and psychology at edinburgh uni and im in 3rd (im doing more psychology modules). I didnt really enjoy the economics in 2nd year uni. There was alot of maths involved. It is totally different to the a level economics you get.

But, although there are people who will advise you on doing the course, my personal view would be that you consider

a) how well you do in a levels economics

b) how well you do in a level maths (although you dont neccesarily need a level maths to do economics at uni, it is strongly reccomended), or if not, how well you did in GCSE maths

c) also how well you can grasp new terminology and new formulae. Right now im kinda struggling.

thats my 2 pence anyway

[Menu Ke Patha]

i think if you do economics, i would prob say rab bhala kare. I actually do something quite similiar to HGM, i do economics and psychology at edinburgh uni and im in 3rd (im doing more psychology modules). I didnt really enjoy the economics in 2nd year uni. There was alot of maths involved. It is totally different to the a level economics you get.

But, although there are people who will advise you on doing the course, my personal view would be that you consider

a) how well you do in a levels economics

b) how well you do in a level maths (although you dont neccesarily need a level maths to do economics at uni, it is strongly reccomended), or if not, how well you did in GCSE maths

c) also how well you can grasp new terminology and new formulae. Right now im kinda struggling.

thats my 2 pence anyway

thanks for replying jee

i currently do alevels maths with guroo sahibs kirpaa!

i dnt do alevel econmics but do business.. which i find interesting.. nd enjoy the economic modules within it (external influnces etc)

i may consider doin politics major?? ..

[Dhanasaree]

^lol @ bhajee, wants 2 b a politician :o