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 85 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
YES! Correct, THANKS for helping me on my review

connor417

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Certain chemicals, after ingestion, can be converted by the body into cyanide. Most of these chemicals have been removed from the market, but some old nail polish remover, solvents, and plastics manufacturing solutions can contain these substances.

Did you know?

There are more sensory neurons in the tongue than in any other part of the body.

Did you know?

According to the FDA, adverse drug events harmed or killed approximately 1,200,000 people in the United States in the year 2015.

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

An Oil-dependent World— Supply and Demand Driven An Oil-dependent World— Supply and Demand Driven
The fact that a mother works outside the home has no negative effect on the well-being of her child ... The fact that a mother works outside the home has no negative effect on the well-being of her child ...
Homeostasis and negative feedback as related to control of body temperature. Homeostasis and negative feedback as related to control of body temperature.
A demand delivery system uses a fuel-pressure regulator attached to the fuel pump assembly inside ... A demand delivery system uses a fuel-pressure regulator attached to the fuel pump assembly inside ...
Calculate the number of sodium ions in 0.375moles of Na2CO3.10H20 Calculate the number of sodium ions in 0.375moles of Na2CO3.10H20
Number line (real numbers) Number line (real numbers)
Video: Normal and abnormal blood pH

For a complete list of videos, visit our video library