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 111 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
Gracias!

lcapri7

  • Member
  • Posts: 350
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Lower drug doses for elderly patients should be used first, with titrations of the dose as tolerated to prevent unwanted drug-related pharmacodynamic effects.

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

Did you know?

Atropine, along with scopolamine and hyoscyamine, is found in the Datura stramonium plant, which gives hallucinogenic effects and is also known as locoweed.

Did you know?

The FDA recognizes 118 routes of administration.

Gram-positive and Gram-negative bacteria. Gram-positive and Gram-negative bacteria.
Positive and Negative Symptoms of Schizophrenia Positive and Negative Symptoms of Schizophrenia
(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 ...
The introduction of a new generation of electric and hybrid cars will reduce the demand for oil The introduction of a new generation of electric and hybrid cars will reduce the demand for oil
Average Number of Days per Year with Thunderstorms Average Number of Days per Year with Thunderstorms
Calculate the number of grams of solute in 500.0 mL of 0.169 M KOH. Calculate the number of grams of solute in 500.0 mL of 0.169 M KOH.
Video: Dissociative Disorders (Part 1)

For a complete list of videos, visit our video library