Constant and so is inverse of the slope

Assignment Help Macroeconomics
Reference no: EM131239447

For a linear demand line, the slope is constant and so is inverse of the slope. Why then the price elasticity of demand different at each point on the demand curve?

Reference no: EM131239447

Questions Cloud

How might they detract from economic growth : Why are children more susceptible than adults to health risks posed by their environment?
Analyse the impact of time on elasticity : Elasticity of demand is different in the short run and in the long run for most goods. Analyse the impact of time on elasticity of (a) demand for gasoline and (b) consumer durables. (c) what difference do you find in the short run and long run el..
Explain the given statement : ‘‘For a dividend-paying stock, the tree for the stock price does not recombine; but the tree for the stock price less the present value of future dividends does recombine.'' Explain this statement.
Why are the objectives of economic development reinforcing : In what ways does neoclassical theory provide a useful framework for analyzing environmental issues? What are some of its limitations?
Constant and so is inverse of the slope : For a linear demand line, the slope is constant and so is inverse of the slope. Why then the price elasticity of demand different at each point on the demand curve?
Aggregate supply and aggregate demand : What is the relationship between inflation, GDP, aggregate supply and aggregate demand?
Calculate the price of a 9 month american call option : Calculate the price of a 9-month American call option on corn futures when the current futures price is 198 cents, the strike price is 200 cents, the risk-free interest rate is 8% per annum, and the volatility is 30% per annum.
Three key facts about short-run economic fluctuations : Identify the three key facts about short-run economic fluctuations and how the economy in the short run differs from the economy in the long run.
Calculate the price of a 3 month american put option : Calculate the price of a 3-month American put option on a non-dividend-paying stock when the stock price is $60, the strike price is $60, the risk-free interest rate is 10% per annum, and the volatility is 45% per annum.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Supply curves for the cigarette market

Statistical studies have shown that the price elasticity of demand is -0.4, and the price elasticity of supply is 0.5. Using this information, derive linear demand and supply curves for the cigarette market.

  Explain how net foreign investment links the market

Clearly explain how net foreign investment links the market for loanable funds and the market for foreign currency exchange. Make sure you define net foreign investment in your answer.

  Perspective on the use of game theory

Read "Game Theory Explained," located on the PBS website. Discuss your perspective on the use of game theory. How do "Nash Equilibrium" and the idea of one "player" impacting another "player" within an organization affect the economic decisions an..

  How could central bank achieve goal in short run

An economy is in long-run macroeconomic equilibrium with an unemployment rate of 5% when the government passes a law requiring the central bank to use monetary policy to lower the unemployment rate to 3% and keep it there.

  What is the fiscal and montery policy actions

What is the fiscal and montery policy actions in saudi arabia since the start of the global financial crisis

  Checking account card to withdraw

Assume that Jimmy Cash has $3,100 in his checking account at Folsom Bank and uses his checking account card to withdraw $310 of cash from the bank's ATM machine.

  Equilibrium price and quantity of milk

Calculate the equilibrium price and quantity of milk and draw a diagram to illustrate your answer.

  Find new expressions for the riskless interest rates

Economics 714 Macroeconomic Theory Spring 2016 - Problem Set 2. Now suppose that there is full trade in goods and assets in every period. Find new expressions for the riskless interest rates (call these rift, for "free trade"). Do the interest rate..

  Describe the impact on excess quantity of labor supplied

Craft Unions Both industrial and craft unions attempt to raise their members' wages, but each goes about it differently. Explain the difference in approaches and describe the impact these differences have on excess quantity of labor supplied.

  Consumption effects of economic growth

Countries in the developing world are often concerned that their terms of trade may worsen economic growth occurs.

  Note on inflation-indexed bond

Suppose that you believe that the average rate of inflation over the next 20 years will be 3.5 percent. Would you by the nominal or the inflation-indexed bond?

  What is the logic behind the campaign

What is the logic behind the campaign and what role do incentives play here - Explain why most seniors often earn lower grades in their last semester before graduation.($1,000)

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd