User Account

All Pages

Price elasticity of demand

Assignment Help Business Economics
Reference no: EM132015016

If the demand for a product is highly Inelastic, that implies the following, EXCEPT:

Question 1

A.  That the price elasticity of demand is lower than one in absolute value.

B. That percentage change in quantity is smaller than percentage change in price

C. That an increase in price will decrease total revenue.

Question 2

The following are correct description for special cases of Linear Demand, EXCEPT:

A. A linear demand has price elasticities that range from zero to plus infinity.

B. The Linear Demand has Elasticity equal to one an the point where the Marginal Revenue equals ONE.

C. For a Linear Demand, revenue is maximized when Price Elasticity equals ONE.

Question 3

If a Cobb-Douglas Demand has price elasticity equals to one in absolute terms, it means:

A. Consumption will increase in the same proportion as the increase in price.

B. Total Revenue will stay the same even if price increases or decreases

C. Total Revenue will always increase in one percent if price increases in one percentage point.

Reference no: EM132015016

Questions Cloud

What is special about industry : What information asymmetries, price discrimination opportunities or other market characteristics explain this situation?
What would your return be without the leverage : What would your return be without the leverage? what would your return be if the entire $10,000 was your own money?
What is the after-tax cost of equity financing : What is the after-tax cost of debt financing? What is the after-tax cost of equity financing?
Compare with the pre-tax equilibrium : The government imposes a $20 per-unit tax to be legally paid by consumers. Compared with the pre-tax equilibrium:
Price elasticity of demand : If the demand for a product is highly Inelastic, that implies the following, EXCEPT:
How you might apply the skills developed in writing : Describe how you might apply the skills developed in writing your integrative project to career activities mentioned in the two articles.
What is a graph of the marginal cost curve : What is a graph of the marginal cost curve? How to derive the marginal revenue function for A? How to derive the optimal price and quantity for A?
The programs features and troubleshooting common problems : A gamepad is a handheld console with buttons and other input mechanisms you typically press with your thumbs to play a game.
Indicate the advantages and disadvantages of each strategy : Evaluate each of these strategies in terms of their appropriateness for your friend’s goal. Indicate the advantages and disadvantages of each strategy.

Reviews

Write a Review

Business Economics Questions & Answers

  Logical expression is correct using equivalence rules

You must prove that your logical expression is correct using equivalence rules.

  Calculate algebraically for equilibrium price-marginal cost

Robert’s New Way Vacuum Cleaner Company is a newly started small business that produces vacuum cleaners and belongs to a monopolistically competitive market. What are the profit-maximizing price and output levels? Explain them and calculate algebraic..

  Calculate the money multiplier and reserve ratio

Hypothetical Country has $130 in currency, $520 in reserves, and $910 in deposits. There are no excess reserves. Use this information to answer the following questions. Enter your answers in decimal form rounded to two decimal places. Calculate the m..

  What is the approximate real rate of interest

If Treasury bills are currently paying 10 percent and the inflation rate is 6.8 percent. a) What is the approximate real rate of interest?

  What will the size of real GDP for three

Consumption in year three is $200, investment in year three is $100, government spending in year three is $150, exports in year three are $100, imports in year three are $150. Prices for everything in year one are $20, in year two prices for everythi..

  How many years will the following take

How many years will the following take? $271 to grow to $11940 if invested at 8.46 percent, compounded annually?

  What is the marginal cost of adding

A firm can hire 10 workers at a wage of $10 but has to pay a wage of $12 to ALL workers to get the 11th worker. What is the marginal cost of adding the 11th worker.

  Technology to find the probabilities

Find the probability that the number who say cashews are their favorite nut is? exactly? three, at least? four, and? at most two.

  Marginal cost equals marginal revenue

Flora's Flowers operates in a perfectly competitive market. At the point where marginal cost equals marginal revenue.

  Income elasticity of demand for tourism

If the Income Elasticity of Demand for tourism in the Chinese outbound market was 3, what would this mean?

  What might be the disadvantage of buying stock

One roommate says that he buys stock only in companies that everyone believes will experience big increases in profits in the future. How do you suppose the price-earnings ratio of these companies compares to the price-earnings ratio of other comp..

  Financial investments for future economic growth

The economy depends on Consumption for short term economic activity and Financial Investments for future economic growth. Frictional unemployment is sometime caused by negative Friction between the now unemployed worker and her boss. Cyclical Unemplo..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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