econs timed assignment ii

note: changes have been made to the document. thanks to jonathan / lirao for pointing out the mistakes. page one, paragraph after the three graphs, changed to:

In the given example, the railway stations charge different prices to commuters who buy tickets in advance, as well as from major stations. Commuters who live near major stations would probably need to travel lesser as business districts are probably located near that area, thus a reduced price would act as an incentive for them to travel. As a result, the demand in this group of consumers is price elastic (figure B). Commuters who live further away would have to travel more and in such cases, the difference in price acts as one of the determining factors for their choice to travel. Thus, the demand in this group of consumers is more price inelastic (figure A).

i messed up the PED values. sorry! since it's confusing, i just removed the details on the values and just talked about the elasticity in general.

another change. the paragraph after that.
sentence: If a uniform price of Pu is charged across markets without price discrimination, the TR from commuters staying far away is 0 as they will choose to buy from smaller stations instead.
change to: If a uniform price of Pu is charged across markets without price discrimination, the TR from commuters who do not travel much is 0 as they will not be able to afford or will not be willing to pay the price P2.

yupp. sorry for all the inconvenience caused. the new file has been uploaded.

hey guys.

i know my first attempt at preparing a set of answers for the first timed assignment wasn't quite successful, but i'm not giving up yet. this time i've spent days to prepare and to ask many people for advice / edits. so, here's a sample essay to help prepare you for the upcoming timed assignment. but before that...

credits

christina - drawing most of the diagrams. editing thrice, especially question 1 part a.
yeqing - editing 5 times, constantly pointing out new ways of improvement.
bochao - editing twice, giving good suggestions.
yikhung - giving good comments.
lirao - editing once.
makyiingchau (senior) - general advice on essay writing
lionelho (senior) - for reference answer to question 2 part a.


hopefully this time, my our attempts won't be in vain (or i'll cry =X). (:
download here!

all the best for the timed assignment!
and all the best to those who have chem test on monday too! (: