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The price elasticity of demand measures the responsiveness of quantity demanded to a change in price?
true
A cross elasticity of demand coefficient of plus 2.5 indicates that the two products are substitutes?
True or False: A cross elasticity of demand coefficient of +2.5 indicates that the two products are substitutes.
When price goes down the quantity demanded goes up Price elasticity measures how?
True
What about elasticity of demand is false?
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.
Is it always true When demand elasticity is equal to -1 marginal revenue is equal to 0?
Yes, when demand elasticity is equal to -1 (unitary elasticity), marginal revenue is indeed equal to 0. This occurs because, at this point, any change in quantity sold does not affect total revenue; increases or decreases in quantity will offset price changes, resulting in no net change in revenue. Thus, when elasticity is -1, the firm maximizes total revenue, leading to marginal revenue being zero.
The price elasticity of demand measures the responsiveness of quantity demanded to a change in price?
true
A cross elasticity of demand coefficient of plus 2.5 indicates that the two products are substitutes?
True or False: A cross elasticity of demand coefficient of +2.5 indicates that the two products are substitutes.
When price goes down the quantity demanded goes up Price elasticity measures how?
True
What about elasticity of demand is false?
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.
Is it always true When demand elasticity is equal to -1 marginal revenue is equal to 0?
Yes, when demand elasticity is equal to -1 (unitary elasticity), marginal revenue is indeed equal to 0. This occurs because, at this point, any change in quantity sold does not affect total revenue; increases or decreases in quantity will offset price changes, resulting in no net change in revenue. Thus, when elasticity is -1, the firm maximizes total revenue, leading to marginal revenue being zero.
In a law of demand there is an inverse relationship between the price and quality demanded. True or False?
True
Is it true that In economics the price rise when demand exceeds supply?
Yes
How can consumers influence or affect the price of goods or services?
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.
What happens when excess demand occurs in an unregulated market?
Excess demand in an unregulated market will cause the price of a product to fall. True or False?
Why does a demand curve downwards from left to right?
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
Price inelasticity of demand?
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.
What is true of the price elasticity of supply for the products of a deceased celebrity entertainer or author?
The deceased painter or artist isn't making any more art - so this often causes the price to rise greatly.
