The basic formula for price elasticity

Assignment Help Business Economics
Reference no: EM131240575

1. The basic formula for price elasticity is

The percentage change in quantity demanded divided by the percentage change in price.

The percentage change in price divided by the percentage change in quantity demanded.

The percentage change in income divided by the percentage change in price.

The change in quantity demanded divided by the change in price.

2. A good is normal if the sign on the income elasticity formula is

Greater than 1.

Negative.

Positive.

Less than 1.

Reference no: EM131240575

Questions Cloud

Higher prices will increase total revenue : Higher prices will increase total revenue if. The term transfer payments refers to
Most goods can yield : Most goods can yield. Which of the following is not a determinant of the price elasticity of demand?
Discourage your staff-members from doing certain thing : As a manager, if you want to discourage your staff-members from doing a certain thing, then you’d arrange it so that -- from their perspective -- the cost of doing that thing would be greater than the benefit of doing it.
Discuss the foreign exchange market : Research and discuss the foreign exchange market in terms of both the value of the currency over time and any regulations affecting the currency for China in 2016.
The basic formula for price elasticity : The basic formula for price elasticity is. A good is normal if the sign on the income elasticity formula is
The formula for the elasticity of supply-utility refers : The formula for the elasticity of supply is. Utility refers to the
Effectively stabilize output and smooth business cycles : Explain the fundamentals behind why changes in the money supply have real effects on the economy and the monetary transmission mechanism. Explain how monetary policy can be used to effectively stabilize output and smooth business cycles. Evaluate the..
Technology used in the production of a good improves : If the level of technology used in the production of a good improves, and assuming the quality of the good does not change, then: i. more output may be obtained with a given amount of inputs compared to before the technological improvement. a given a..
Marginal product curve of input and production function : The marginal product curve of input Y shows. Which of the following is true of a production function?

Reviews

Write a Review

Business Economics Questions & Answers

  Consider the game of the battle of sexes

Consider the game of the battle of sexes. How would you modify the payoffs to (F,O) and (O,F) to reflect the following: Namely, the husband is unhappiest when he is at the opera by himself, he is a little happier when he is with his wife at the opera..

  Discuss how consumer assesses value of marlboro cigarettes

Discuss how the consumer assesses the value of marlboro cigarettes. How does it compare to competing marlboro on the market? Is value based on price, product attributes, something else, or a combination of things?

  EUAC comparison and an outsider cash flow approach

Clear Water Co. has a down-hole well auger that was purchased 3 years ago for $45,000. It has been depreciated over the three years as a MACRS-GDS 5-year property. It has an estimating remaining life of 7 years. O&M costs are $20,000 per year. Clearl..

  Make an initial investment at the beginning of first year

You need $23,956 at the end of nine years, and your only investment outlet is a 7 percent long-term certificate of deposit (compounded annually). With the certificate of deposit, you make an initial investment at the beginning of the first year. What..

  Origin has diminishing marginal rate of substitution

An indifference curve that is convex to the origin has diminishing marginal rate of substitution: Find the marginal rate of substitution between x and y for the following function: Demonstrate mathematically whether each utility function above exhibi..

  What allocation maximizes social welfare

Now take a Rawlins view and assume that the social welfare function is the level of utility of the individual with the lowest utility level. Using the data from Problem 1, and again assuming there are eight oranges, what is the social welfare associa..

  Find more shrinking-more corruption

Explain why you tend to find more shrinking, more corruption, and more inefficiency in large firms than you do in small firms and explain why you tend to find more shrinking, more corruption, and more inefficiencies in government than you do in large..

  Additive model and multiplicative form

There are two general forms often used in time series decomposition analysis: additive model and multiplicative form. Give the expressions for them. When would you use additive model or multiplicative model in time series decomposition? Discuss.

  Monopolistically competitive firm producing good

Can a monopolistically competitive firm producing a good with lots of very close substitutes earn large positive profits in the long run? Please explain.

  The return of the stock account is expected

You are planning to save for retirement over the next 35 years. To do this, you will invest $840 per month in a stock account and $440 per month in a bond account. The return of the stock account is expected to be 10.4 percent, and the bond account w..

  Calculate the income tax liability

Using the following tax bracket cutoffs (the cutoffs represent the top of that bracket) calculate the income tax liability for someone with $260,000 of taxable income. (taxable income means that all deductions and exemptions are already accounted for..

  Economists to control for various factors

Which of the following are not assumed by economists to control for various factors that are not relevant or important to understand and analyze using a model a specific real life situation that economists are concerned with in a given situation?

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