This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Why is the price elasticity of demand generally a negative number? What will be an ideal ... (Read 107 times)

EY67

  • Hero Member
  • *****
  • Posts: 531
on: Jun 29, 2018
Why is the price elasticity of demand generally a negative number?
 
  What will be an ideal response?

Question 2

A monopolist has the power to set price, but is not entirely free to set the price of its product. Explain.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

pami445

  • Sr. Member
  • ****
  • Posts: 303
Reply #1 on: Jun 29, 2018
Answer to Question 1

The law of demand says that an increase in the price of a product will lead to a decrease in quantity demanded. Thus, price and quantity demanded are inversely related to one another. This means that if either the numerator or the denominator of the ratio is positive, the other will be negative.

Answer to Question 2

A monopolist faces a downward-sloping demand curve. As a result, to sell more of a good a monopolist must lower the price. How much the price must be lowered is determined by the price elasticity of demand.


EY67

  • Member
  • Posts: 531
Reply 2 on: Jun 29, 2018
Excellent

bbburns21

  • Member
  • Posts: 336
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

Did you know?

Automated pill dispensing systems have alarms to alert patients when the correct dosing time has arrived. Most systems work with many varieties of medications, so patients who are taking a variety of drugs can still be in control of their dose regimen.

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

Did you know?

In the United States, an estimated 50 million unnecessary antibiotics are prescribed for viral respiratory infections.

Did you know?

Chronic marijuana use can damage the white blood cells and reduce the immune system's ability to respond to disease by as much as 40%. Without a strong immune system, the body is vulnerable to all kinds of degenerative and infectious diseases.

Some mangrove islands in the Florida Keys, which number in the thousands, are convenient places to t Some mangrove islands in the Florida Keys, which number in the thousands, are convenient places to t
Negative feedback control of the female reproductive hormones Negative feedback control of the female reproductive hormones
(a) The low-resolution signal has the same number of pulses as the engine has cylinders. (b) A ... (a) The low-resolution signal has the same number of pulses as the engine has cylinders. (b) A ...
Average Number of Hours Slept per Day by Various Mammalian Species Average Number of Hours Slept per Day by Various Mammalian Species
How to write any number in engineering notation How to write any number in engineering notation
The charge for telephone calls T is partly constant and partly varies with the number N of ... The charge for telephone calls T is partly constant and partly varies with the number N of ...
Video: Membrane Protein and Facilitated Transport (Passive Vs Active)

For a complete list of videos, visit our video library