because the ordinary demand curve ignores the income effect of price changes.also since the compensated demand curve is less inelastic than an ordinary demand curve.
To determine elasticity on a graph, you can look at the slope of the curve. If the curve is steep, it indicates inelasticity, while a flatter curve suggests elasticity. Additionally, the price elasticity of demand can be calculated by dividing the percentage change in quantity demanded by the percentage change in price.
The relationship between ne exposts and GDP makes the slope of the ae curve flatter than it would be otherwise
Because of diminishing marginal rate of substitution, which is the principle that the more of one good a consumer has, the more they are willing to give up for an additional unit of the other good. Therefore the indifference curve must get flatter as we go along it
Yes. An expansionary fiscal policy, or more optimistic growth expectations in the private sector will shift the aggregate demand (AD) curve upwards. The position of the AD curve is also affected by the central bank's inflation target, if the target falls, the AD curve will shift downwards. Monetary policy influences the slope of the AD curve as well as the position. If the central bank put strong emphasis on fighting inflation and little emphasis on stabilizing output, the AD curve will be flatter. The other way around will yield the opposite result.
because the ordinary demand curve ignores the income effect of price changes.also since the compensated demand curve is less inelastic than an ordinary demand curve.
To determine elasticity on a graph, you can look at the slope of the curve. If the curve is steep, it indicates inelasticity, while a flatter curve suggests elasticity. Additionally, the price elasticity of demand can be calculated by dividing the percentage change in quantity demanded by the percentage change in price.
The relationship between ne exposts and GDP makes the slope of the ae curve flatter than it would be otherwise
you make one curve. then you make another curve. presto? you have a butt.
so you can watch them make out
because the curve, like an arch in a bridge, is sort of self supporting. the flatter it is the easier it is to break.
Because of diminishing marginal rate of substitution, which is the principle that the more of one good a consumer has, the more they are willing to give up for an additional unit of the other good. Therefore the indifference curve must get flatter as we go along it
The relationship between temperature and the shape of the Gibbs free energy curve in a chemical reaction is that as temperature increases, the curve becomes flatter and broader. This is because higher temperatures increase the kinetic energy of molecules, making it easier for the reaction to occur, resulting in a lower activation energy and a more spread out curve.
An indifference curve is typically convex from below. This means that as you move along the curve, the slope becomes flatter, reflecting the principle of diminishing marginal rate of substitution. In other words, as a consumer substitutes one good for another, they are willing to give up fewer units of the good they're consuming less of, resulting in the curve's convex shape.
Not possible... do crunches the entire hour?
Sharper!
It does not. It has a smooth curve. That is called an arc.