Does economist concept of value is worthless

Assignment Help Microeconomics
Reference no: EM132123069

Question: Assume that the elasticity of demand for some good is less than 1 in absolute value. If half of the available supply is destroyed its price will rise, as will the total amount consumers spend on it. Does this mean the economist's concept of value is worthless, because a smaller amount of the good is worth more than a larger one? Explain.

Reference no: EM132123069

Questions Cloud

Should the firm raise the price of the product : Developing a new product has taken longer and required more work than was expected at the time the decision to develop was first made.
Who is the residual claimant in a nonprofit organization : Are shareholders residual claimants in a publicly traded corporation? Why or why not? In some industries, like hospitals, for-profit producers compete.
Review problem on cross-elasticity of demand : Do you expect that the cross-elasticity of demand for Hyundais with respect to the price of Subarus will be positive or negative?
What assumptions about elasticities should you target users : If instead you want simply to reduce consumption and are uninterested in what happens to price, under what assumptions about elasticities should you target user
Does economist concept of value is worthless : Assume that the elasticity of demand for some good is less than 1 in absolute value. If half of the available supply is destroyed its price will rise.
Why did not they talk about a rush to buy : Say the New York Stock Exchange average fell by 2 percent yesterday, and commentators spoke of a rush to sell. Because there had to be a purchaser of every.
Construct a different series of trades : In the example from the Exchange Without Production section, construct a different series of trades among the five people and show that it leads.
Can we conclude that the market demand for x slopes upward : Following are observations on the market price and the quantity of good X produced and consumed in three different years: $10 and 100 units, $4 and 57 units.
How does a ceiling price on popcorn affect the price of cola : Assume that popcorn and potato chips are substitutes, and popcorn and cola are complements. How does a ceiling price (below equilibrium) on popcorn affect.

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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