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This implies that quantity demanded increases when price decreases. Is this always true?
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What is the difference between the multiplier and the accelerator?
the multiplier principle implies that investment increases output whereas the acceleration principle implies that increases in output will themselves induce increases in investment.
What are the types of income elasticity of demand?
Income elasticity of demand(EY):Income elasticity of demand measures the relationship between a change in quantity demanded and a change in income. Income elasticity of demand measures the degree responsiveness or reaction of the demand for a good to a change in the income of the consumer. It is calculated as the ratio of the percentage change in demand to the percentage change in income. In other words, it is defined as the rate of percentage change in quantity demanded resulted from percentage change in consumer's income. For example, if, in response to a 10% increase in income, the demand for a good increased by 20%, the income elasticity of demand would be 20%/10% = 2.Types of Income elasticity:i. Zero Income Elasticity of DemandZero income elasticity of demand is that in which quantity demand for a commodity remains constant to any change in income of the consumer. The value of the zero income elasticity is zero. It can be found in case of neutral goods. Graphically it can be explained asIn the graph, quantity demand is measured in X-axisand income is measured in Y-axis. DD is the demandcurve which is parallel to Y-axis implying that nochange in quantity demanded to any change inconsumer's income. Income is varying from Y1to Y2 and Y2 but quantity demand remain thesame quantity at Q1.ii. Positive Income Elasticity of Demand(EY>0)Positive income elasticity of demand is that in which increase in consumer's income leads to increase in quantity demanded and vice-versa. The numerical value of positive income elasticity is always greater than zero which may be greater than(for luxurious goods) or equal (for normal goods)or less than(for necessity goods) unity i.e. 1. For example, when consumers become reach or increase their income then they spend more on luxurious goods. On the contrary, consumers purchase less quantity of luxurious goods if their income decrease or they become poor. It can be further explained with the help of following figureIn the given figure, DD is the demand curve which is positivelyslopped. This demand curve implies, when consumers incomeincreases from Y1 to Y2 as in figure then consumer demandedmore quantity i.e. increases quantity from Q1 to Q2 accordingto figure.i. Negative Income Elasticity of Demand(EY
DO Average cost always falls as output increases because fixed costs will be spread more thinly?
Not necessarily. Total Cost = Fixed Cost + Variable Cost; Variable Cost=f(Quantity) and if f`(Quantity)>0 it implies that as quantity produced rises variable cost would rise. Average Total Cost=Average Fixed Cost + Average Variable Cost. If initially the Total Cost function is more of an odd function (mostly it is) then the Average Cost will look more like a parabola i.e. it will tend to fall becuase the Fixed Cost gets thin but later that is overtaken by the increase in Variable Cost. But there are cases when Average Total Cost does fall continuously as quantity increases and these involve huge Fixed Costs like say Electric Supply Infrastructure. This is called natural monopoly.
What are example of product with perfectly elastic and perfectly inelastic supply?
Elasticity of supply describes how a product's quantity affects its price. Milk, for example, has an elastic supply - the quantity goes up and the price goes down. Or, as the quantity is limited, the price goes up. Inelastic supply implies that availability does not affect price, such as with airplane flight tickets.
Describe how the necessity of a good and the availability of substitutions impact price elasticity?
The Necessity of a good and the availability of substitutions impact price elasticity. The definition of Price Elasticity is a measure of responsiveness of some other variable to a change in price (About.com 2009). The higher the price elasticity, the more responsive buyers are to price changes. High price elasticity implies that when the price of something goes up, buyers will buy less of it and when the price of it goes down, they will buy more. Low price elasticity is the opposite, changes in price have little influence on demand.When dealing with price elasticity, consider the changes in prices of substitute goods. When the change of a substitute good occurs, a change in the demand of original goods will be affected in the same direction. For instance, if the price of gelato goes up, gelato eaters will switch to ice-cream. If the price of the substitute good goes down, the gelato is now is now cheaper, consumers buy more gelato instead and the quantity of ice-cream demanded is cut. The price increase of a substitute good increases the quantity demanded of the original good and a decrease in the price of a substitute good causes a decrease in the quantity of original good demanded. (Tomlinson, 2009)REFERENCESTomlinson, Steve. (Speaker). (Year). Economics with Steve Tomlinson Transcript: Understanding Markets Demand [Episode 4.2-1]. . Podcast retrieved from http://custom.cengage.com/static_content/OLC/0324833326/data/transcripts/8353.pdf(2009). About.com. Retrieved October 3, 2009, from http://economics.about.com/od/economicsglossary/g/pricee.htm
Positive correlation implies what--dependent variable improves as independent variable increases or dependent variable decreases as independent variable increases or?
dependent variable improves (or increases) as independent variable increases
What is the difference between the multiplier and the accelerator?
the multiplier principle implies that investment increases output whereas the acceleration principle implies that increases in output will themselves induce increases in investment.
What are the types of income elasticity of demand?
Income elasticity of demand(EY):Income elasticity of demand measures the relationship between a change in quantity demanded and a change in income. Income elasticity of demand measures the degree responsiveness or reaction of the demand for a good to a change in the income of the consumer. It is calculated as the ratio of the percentage change in demand to the percentage change in income. In other words, it is defined as the rate of percentage change in quantity demanded resulted from percentage change in consumer's income. For example, if, in response to a 10% increase in income, the demand for a good increased by 20%, the income elasticity of demand would be 20%/10% = 2.Types of Income elasticity:i. Zero Income Elasticity of DemandZero income elasticity of demand is that in which quantity demand for a commodity remains constant to any change in income of the consumer. The value of the zero income elasticity is zero. It can be found in case of neutral goods. Graphically it can be explained asIn the graph, quantity demand is measured in X-axisand income is measured in Y-axis. DD is the demandcurve which is parallel to Y-axis implying that nochange in quantity demanded to any change inconsumer's income. Income is varying from Y1to Y2 and Y2 but quantity demand remain thesame quantity at Q1.ii. Positive Income Elasticity of Demand(EY>0)Positive income elasticity of demand is that in which increase in consumer's income leads to increase in quantity demanded and vice-versa. The numerical value of positive income elasticity is always greater than zero which may be greater than(for luxurious goods) or equal (for normal goods)or less than(for necessity goods) unity i.e. 1. For example, when consumers become reach or increase their income then they spend more on luxurious goods. On the contrary, consumers purchase less quantity of luxurious goods if their income decrease or they become poor. It can be further explained with the help of following figureIn the given figure, DD is the demand curve which is positivelyslopped. This demand curve implies, when consumers incomeincreases from Y1 to Y2 as in figure then consumer demandedmore quantity i.e. increases quantity from Q1 to Q2 accordingto figure.i. Negative Income Elasticity of Demand(EY
What does it mean to say that current and voltage in a circuit are directly related?
It means that when one increases, the other increases as well. Also, it implies that this increase is proportional - if the voltage is doubled, the current will also double. Note 1: Normally, the voltage is considered the independent quantity; that's the quantity you can control directly. And if the voltage changes, so will the current. Note 2: In simple circuits, such as those that only have a voltage source and resistors, the relation will be a direct proportion. With electronic components, such as a transistor, the relationships can be more complicated.
What is the difference between fewest and least?
Fewest implies a numerical quantity. Least can, too, but not necessarily (it can refer to a non-numerical level or degree).
Which semiconductor have positive temperature coefficient?
With the increase in temperature if the resistance increases or the current in the circuit decreases then it is said to be have positive temperature coefficient .But in semi-conductors with the increase in temperature the electrons present in the valance band are excited and they would enter the conduction band for conduction . As the no. of charge carriers always increase in a semi-conductor , implies that the current always increases with the increase in temperature so the semi-conductor can never have positive temperature coefficient
How does the total distance changes as the total time increases in case of uniformly motio?
For uniform motion, distance = velocity*time where uniform implies that the velocity is a constant. Therefore distance = v*time and so, if time increases by t, the distance increases by vt.
Examples of Avogadro's law in everyday life?
Avogadro's Law: Doubling the number of moles of gas doubles its volume, if temperature and pressure aren't changed.A flat tire takes up less space than an inflated tire.Lungs expand as they fill with air. Exhaling decreases the volume of the lungs.A balloon filled with helium weighs much less than an identical balloon filled with air. (Avogadro's Law implies that equal volumes contain equal numbers of molecules, when pressure and temperature are held constant. Since both balloons contain the same number of molecules, and since helium atoms have lower mass than either oxygen molecules or nitrogen molecules in air, the helium balloon is lighter.)Wet air is less dense than moist air (see the FAQ on gases for an explanation).Or simply, all in all, it's just a matter of quantity of gas. (Quantity refers to it's moles). And as the quantity increases, the volume of it's containre, increases to. :)
DO Average cost always falls as output increases because fixed costs will be spread more thinly?
Not necessarily. Total Cost = Fixed Cost + Variable Cost; Variable Cost=f(Quantity) and if f`(Quantity)>0 it implies that as quantity produced rises variable cost would rise. Average Total Cost=Average Fixed Cost + Average Variable Cost. If initially the Total Cost function is more of an odd function (mostly it is) then the Average Cost will look more like a parabola i.e. it will tend to fall becuase the Fixed Cost gets thin but later that is overtaken by the increase in Variable Cost. But there are cases when Average Total Cost does fall continuously as quantity increases and these involve huge Fixed Costs like say Electric Supply Infrastructure. This is called natural monopoly.
What are example of product with perfectly elastic and perfectly inelastic supply?
Elasticity of supply describes how a product's quantity affects its price. Milk, for example, has an elastic supply - the quantity goes up and the price goes down. Or, as the quantity is limited, the price goes up. Inelastic supply implies that availability does not affect price, such as with airplane flight tickets.
How does the frequency of a gamma ray change as tis wavelength decreases?
Less wavelength implies more frequency. The product of wavelength x frequency is always the speed of the wave - in this case, the speed of light.
As the density of air decreases its pressure what?
Temperature is always measured when surface have transition from hot to cold or vice-versa. When molecules decrease in density, implies the individual molecules get cooler/hotter faster to room temp.hence,When air molecules decrease air temperature rapidly changes to room temperature or ambient temperature.
