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 74 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
:D TYSM

momolu

  • Member
  • Posts: 320
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

The strongest synthetic topical retinoid drug available, tazarotene, is used to treat sun-damaged skin, acne, and psoriasis.

Did you know?

Human neurons are so small that they require a microscope in order to be seen. However, some neurons can be up to 3 feet long, such as those that extend from the spinal cord to the toes.

Did you know?

The effects of organophosphate poisoning are referred to by using the abbreviations “SLUD” or “SLUDGE,” It stands for: salivation, lacrimation, urination, defecation, GI upset, and emesis.

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

Positive and Negative Symptoms of Schizophrenia Positive and Negative Symptoms of Schizophrenia
Alan Price - Poor People Alan Price - Poor People
The bacterial cell wall: (a) gram-positive bacterium; (b) gram-negative bacterium. The bacterial cell wall: (a) gram-positive bacterium; (b) gram-negative bacterium.
The distribution of cones and rods over the human retina. The figure illustrates the number of cones ... The distribution of cones and rods over the human retina. The figure illustrates the number of cones ...
Economic recession in 2008 saw a small decrease in demand Economic recession in 2008 saw a small decrease in demand
Mayan Number Mayan Number
Video: Neural regulation of mechanical digestion- CNS voluntary, ANS & ENS controlled involuntary movements

For a complete list of videos, visit our video library