User Account

All Pages

Raise prices when facing an elastic demand curve

Assignment Help Macroeconomics
Reference no: EM13335243

Why is that a profit maximizing businessman would always raise prices when facing an inelastic demand curve, but might or might not raise prices when facing an elastic demand curve? explain and justify your answers in detail.

Reference no: EM13335243

Questions Cloud

What some of the factors that a finance manager considers : What some of the factors that a finance manager considers in choosing an appropriate discount rate for a capital investment project
How much free cash flow did the firm generate during 2011 : Net income = $600; after-tax operating income [EBIT (1-T)] = $700; and Total assets = $2,000. Information for 2011 is as follows: Net income = $825; after-tax operating income [EBIT (1-T)] = $1,125;
Write prolog clauses to define the relationships : Using Prolog, establish a database of facts and rules for the following predicates.
Determine what must the beta of the stock be : A stock has an expected return of 13.6%, the risk-free rate is 3.7%, and the market risk premium is 7.1%. What must the beta of this stock be
Raise prices when facing an elastic demand curve : Why is that a profit maximizing businessman would always raise prices when facing an inelastic demand curve, but might or might not raise prices when facing an elastic demand curve? explain and justify your answers in detail.
Compute zachs apparent weight while the elevator is braking : Zach, whose mass is 64kg , is in an elevator descending at 10m/s. What is Zach's apparent weight while the elevator is braking
Write a function that uses stream-map : Now write a function that uses stream-map to produce the sum of two streams element by element for the first x elements . Be sure to test with several different types of streams (for example, you could sum together the odd and even numbers betwee..
Determine what is the expected return on the portfolio : You own a portfolio that has $1,300 invested in Stock A and $2,100 invested in Stock B. If the expected returns on these stocks are 10% and 16%, respectively, what is the expected return on the portfolio
What would be the cash flow from assets-cffa at t : The new machine falls into the MACRS 7-year class, has an estimated life of 8 years, it costs $200,000 and RHPS plans to sell the machine at the end of the eighty year for $50,000.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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