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 94 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
Thanks for the timely response, appreciate it

rachel

  • Member
  • Posts: 323
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

Did you know?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

Negative control of an inducible set of genes: function of the lac repressor in regulating the lac o Negative control of an inducible set of genes: function of the lac repressor in regulating the lac o
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
Meditation Reduces Negative Emotions Meditation Reduces Negative Emotions
The number of words correctly completed in the New York Times crossword puzzle increases with age ... The number of words correctly completed in the New York Times crossword puzzle increases with age ...
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 ...
The demand for cheap coal to generate electrical power is rising The demand for cheap coal to generate electrical power is rising
Video: Normal and abnormal blood pH

For a complete list of videos, visit our video library