Elasticity, Microeconomics

Assignment Help:
not that long ago we experienced the excitement of thinking we would have cheaper online books and free music. these visions that we had of a free market utopia that blinded us to the fact there were immutable facts about economics and one of the standards is price elasticity, unfortunately some dwell on the potential still. Those early days of e-books held the much promise for such a short time. E-goods are returning to the price levels which we thought they had left behind, again the inevitable price elasticity. The question I have is this...why is it so certain that price elasticity will cause those prices to return to levels they were at instead of staying lower based on the new technology?

Related Discussions:- Elasticity

Illustrates the key terms of excise tax, Illustrates the key terms of excis...

Illustrates the key terms of excise tax? Terms of excise tax: a. Tax incidence • Who bears the load of the tax? b. Excess burden or Deadweight loss • Taxes inflict

What is the price of a call option on stock, Consider an economy with three...

Consider an economy with three states. The following set of stocks is traded:   x 1 =(2,2,0)    x 2 =(1,0,3)  x 3 =(0,2,4). The t=0 prices of these stocks are given as follow

Market structures, what are the sources of oligopoly power

what are the sources of oligopoly power

Explain what economies of scale are, Explain what economies of scale are an...

Explain what economies of scale are and why they have become increasingly common in later years. Economies of scale - Enhance in fixed factors, but output enhances at a propo

Market structures, illustrate and discuss the implications of various marke...

illustrate and discuss the implications of various markets structures(competitive and non-competitive) for price dertimation

Distinguish between interventionist and market-led strategy, Distinguish be...

Distinguish between interventionist and market-led strategies of development. Explanation of interventionist strategy; heavy government involvement in the planning of output, p

Calculate the elasticity of pollution demand, 1.  The marginal benefit (dem...

1.  The marginal benefit (demand) curve for pollution for an industry is P=100-4*Q, where Q is emissions in tons.  The current emissions tax (price) for pollution is $40/ton.  Regu

What are the factors of production, Factors of Production :   The factors o...

Factors of Production :   The factors of production are the resources that are essential for production. They are usually separated into 4 dissimilar groups: Land - all natu

Write Your Message!

Captcha
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