Price elasticity of demand is positively correlated with the existence of substitute goods.
true
True or False: A cross elasticity of demand coefficient of +2.5 indicates that the two products are substitutes.
There could be many things said about elasticity of demand that are false, but there would be no point in making things up that are not true. This appears to have been taken from a multiple choice exam.
True
True
true
True or False: A cross elasticity of demand coefficient of +2.5 indicates that the two products are substitutes.
There could be many things said about elasticity of demand that are false, but there would be no point in making things up that are not true. This appears to have been taken from a multiple choice exam.
True
True
Yes
supply and demand. If more people want it, it is in greater demand thus the price is more; if less people want it, the opposite is true.
Excess demand in an unregulated market will cause the price of a product to fall. True or False?
A demand curve slopes downward left to right because the relationship between price and demand is negative - as price drops demand rises. The opposite is true for a supply curve where as price rises supply rises - the relationship is positive so the supply curve slopes upward from left to right. Nova net answer- because demand decreases as price increases
The elasticity of demand is related to the slope of the demand curve, but is not the same. The steeper the demand curve is the more the consumers "must" have the good. Lifesaving medicine, for example, has a very steep demand curve because producers can raise the price without appreciably decreasing the quantity demanded. Goods like this are inelastic. Goods with many alternates, like potato chips, are elastic. If the price is raised, consumers will purchase alternates instead, like pretzels.
A demand curve slopes downward left to right because the relationship between price and demand is negative - as price drops demand rises. The opposite is true for a supply curve where as price rises supply rises - the relationship is positive so the supply curve slopes upward from left to right. Nova net answer- because demand decreases as price increases
A demand curve slopes downward left to right because the relationship between price and demand is negative - as price drops demand rises. The opposite is true for a supply curve where as price rises supply rises - the relationship is positive so the supply curve slopes upward from left to right. Nova net answer- because demand decreases as price increases