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Wednesday 20 February 2013

Life

Commentary 3
The International Monetary Fund (IMF) has plotted a appendage projection. It was predicted that Asian countries will have a growth in their economics out-of-pocket to few supportive details. It is speculated that Malaysia would has a positive growth in economy with supportive internal indigence and robust investment.

Robust investment is a imitate that is used for economic growth which will off bent the slow down in economic momentum. It is adopted so that the impact of trade volatility domiciliate be controlled everyplace the course of an investment. In this model, investors ar told when to invest and when not to invest. These investments are organized firmly so that they will gain to a greater extent and minimum loss. Basically, this model is using investment theory which is an addition allocation strategy in order to maximize returns and besmirch losses. With this action, the economy will boost and constantly growth.

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Demand can be defined as the total amount currency which individuals or organization want to commit for spending on goods or services over a specific period. The domestic help demand will always be there due to the protectionism implement by government. In most Asian countries, good market will always be their important market in supporting the national economic growth.

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Price of Commodity

plot 2: The Inelastic Good of Commodity


P2

P1
C

B
A
D

Quantity of Commodity
Q1
Q2

Generally, commodity such as chili will always have demand because all commodity goods are considered as inelastic good. The increase in price will not give a significant impact on the quantity demanded of the market of chili. In diagram 1, even though the price of chili climb up from P1 to P2 and quantity demanded decrease from Q1 to Q2, no significant impact because eye socket loss (area B) is smaller than area gained (area C). Thus, inelastic goods really do support the economic growth.
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