Hopefully it will be continued

Just Walking past by....

Well, i am going to write an explanation of Kinked demand since i cannot understand the book.(I know i am stupid-.-)

Kinked demand is one of the main theories which explain how oligopolists behave which indicative of price rigidity ( stickiness or stable) in oligopoly.

The two main points are :

If one firm increased its price, the rivals will not follows, therefore the demand will be price elastic, which leads to a fall in total revenue of the firm

If one firm decreased its price, the rivals will also follow to avoid a loss in market share, therefore the demand will be relatively inelastic, which will also leads to a fall in total revenue of the firm.

The kinked demand curve at P1 and Q1 means that there is a discontinuity in marginal revenue curve.


To sum up, the firms are interdependent on each other. Since it is very hard to rise or fall price, they prefer non-price factor competition in branding, location and ext.

New post

heh heh~~
long time did not write DAILY blog...but i am sure, this is my daily blog=p
Finally, Finally i finished my economic exam today
I dun want to talk about how is it, it is just past
the same feeling of the ending of Easter course has come back.
Three months, I spent three months to finish the As level,
From know nothing until really interested on this subject
Big THANK YOU to Mr.Chris
How thankful i am that u had taught me, how blessing i am.
And how i wish u could teach me next year.
You funny, humor, old and childish man=p
i will continue to update the post while i am in China, please feel free to vist:)

Exams are really coming

My first exam paper is sociology, which is next Monday. Therefore, i am going to write something about that on my another blog account.

Hope everyone will do well this time.

suicide

I did 10 questions wronf out of 34,
may i just go and suicide?
Good idea!!

Dont be happy,
i will still see you tomorrow even i go to suicide.

Economic exercise

Answers to MCQ



1.b

2.c

3.b

4.a

5.b

6.c

7.a

8.c

9.d

10.c

11.a

12.a

13.a

14.a

15.d

16.d

17.d

18.d

19.b

20.c

21.d

22.??b?

23.a

24.a

25.c

26.c

27.d-.-

28.b

29.b.

30.c

31.b

32,a

33.the graph?

34.d

35.i think quantity demand is due to price factor and another is non-price factor.

Correct answers:

8.b

16.b

20.b

21.c

22.b

23.b

24.c

26.d

30.d

60 and 17

Tomorrow is a very special day for two persons that i know

Mr.chris and Siyi

Tomorrow is their birthday!!!

Mr.chris is going to be 60(hahahahahaah) which surprised me when i found out and Siyi is going to be 17(-.- still very young) which remind me i am 19=_=.

Happy birthday to your!

May your life be even brighter as each birthday comes and goes,with new happiness unfloding like the petal of a rose .Have a wonderful birthday!

I hope everything is going well in Poland and every little wishes from Mr.chris will come ture.
I hope Siyi will performance very well in June exam and running well of her studies, get the results that she wants!

Carry on what i did yesterday

Cause of economic growth

• component of AD in the short run
• AS in the long run
• could write with reference to all policies.

Achievement of supply side

• economic growth
• capital investment
• low unemployment
• advance technology manufacture
• living standard
• productivity
• international trade position
• wage

benefit of Budget deficit

• government spending on capital investment that bring potential benefits in the long run
• if increases in public sector such as health, education, it will increase labour productivity and employment.
• A tool of demand management.Maintaining a high level of demand and keep unemployment low.

Cost of inflation

• Menu cost
• shoeleather cost
• inflation cause inflation
• fall in the money value
• fiscal drag
• uncertainty
• inflationary noise
• loss of international competitiveness

Import controls

• tariff
• quotas
• embargoes
• red tape