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

Author Question: The change in total welfare from a 10 increase in price will depend only on the elasticity of ... (Read 52 times)

littleanan

  • Hero Member
  • *****
  • Posts: 575
on: Jul 1, 2018
The change in total welfare from a 10 increase in price will depend only on the elasticity of demand.
 
  Indicate whether the statement is true or false

Question 2

Consumers who are more sensitive to changes in price suffer a greater loss of consumer surplus from any given price increase.
 
  Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

kilada

  • Sr. Member
  • ****
  • Posts: 311
Reply #1 on: Jul 1, 2018
Answer to Question 1

False. The effect of a price change also depends on revenue changes.

Answer to Question 2

False. Consumers who are more sensitive to the price increase will reduce their purchase of the good by a greater extent than those who are not price sensitive. As a result, they incur a smaller loss of consumer surplus.


littleanan

  • Member
  • Posts: 575
Reply 2 on: Jul 1, 2018
YES! Correct, THANKS for helping me on my review

gcook

  • Member
  • Posts: 343
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

Did you know?

The U.S. Pharmacopeia Medication Errors Reporting Program states that approximately 50% of all medication errors involve insulin.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

Effect of Perceived Price of a Drug on Placebo Analgesia Effect of Perceived Price of a Drug on Placebo Analgesia
Change in Emotional States During Adolescence Average emotional state becomes teadilyi more negativ Change in Emotional States During Adolescence Average emotional state becomes teadilyi more negativ
Changes in Synaptic Density From Birth to Age 2 Synaptic connections increase throughout the first Changes in Synaptic Density From Birth to Age 2 Synaptic connections increase throughout the first
Increase in rainfall on continents Increase in rainfall on continents
The impact of climate change on natural ecosystems The impact of climate change on natural ecosystems
Geoengineering is not a solution to climate change Geoengineering is not a solution to climate change
Video: Nucleic acid digestion - brush border enzymes, end products & transport mechanism

For a complete list of videos, visit our video library