Price elasticity of demand is constant linear demand curve

Assignment Help Business Economics

Reference no: EM131009999

1. Price elasticity of demand is constant along a linear demand curve.

2. If a 10% fall in the price of bagels results in 20% increase in the quantity of bagels demanded, then the price elasticity of demand of bagels is 0.2.

3. Price elasticity of supply is constant along a linear supply curve.

True or False question.

Reference no: EM131009999

Questions Cloud

Suppose coal is only to be extracted over two periods : Suppose coal is only to be extracted over two periods. The inverse demand for coal is estimated to be P = 300 - Q, where P is the price of coal and Q is the quantity demanded. The marginal cost of extraction is given by MC = 2Q. What level of extract..

Firm operates in a perfectly competitive factor market : The marginal productivity theory states that if a firm operates in a perfectly competitive factor market, it pays each factor of production its marginal revenue product. However, this theory may fail to hold if factor markets are not competitive. Whi..

Discuss the ethical implications : The normal way of filing taxes is to put in a very low number, which starts a protracted series of negotiations, eventually ending up with a higher number being paid. This new bank did not follow this and the Italian authorities assumed it was stated..

How many months will it take for sallie to repay entire loan : A certain college graduate, Sallie Evans, has $24,000 in student - loan debt at the end of her college career. The interest rate on this debt is 0.75% per month. If monthly payments on this loan are $432.61, how many months will it take for Sallie to..

Price elasticity of demand is constant linear demand curve : Price elasticity of demand is constant along a linear demand curve. If a 10% fall in the price of bagels results in 20% increase in the quantity of bagels demanded, then the price elasticity of demand of bagels is 0.2. Price elasticity of supply is c..

Determine whether the rate rise or fall : The federal government is trying to decide what to do with the surplus they expect to have this year. They increase spending on schools. Determine whether the rate rise or fall? Does the loanable funds rise or fall?

The real wage increases with capital per worker : One aspect we have not covered is how the real wage depends on capital per worker. It is easy to show that the real wage increases with capital per worker (because the marginal product of labor is higher when each worker operates with more capital). ..

Portfolio investment better than foreign direct investment : Assume that N1 and N2 are neighbors and that N1 is relatively human and physical capital abundant while N2 is relatively labor abundant. Explain why. As a means for less developed countries to attract the savings and investment necessary for economic..

User Account

All Pages