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

Author Question: If the demand for a product increases in an increasing cost industry, as the market adjusts in the ... (Read 53 times)

fnuegbu

  • Hero Member
  • *****
  • Posts: 539
on: Jun 30, 2018
If the demand for a product increases in an increasing cost industry, as the market adjusts in the long run:
 a. price will rise.
  b. the firm's per-unit cost will increase.
  c. the firm's per-unit cost will fall.
  d. the market price will return to its initial position.

Question 2

What does the price elasticity of demand measure? What does a price elasticity of demand coefficient of 1.2 mean? Does the product have an elastic, unitary elastic or inelastic demand?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jasonq

  • Sr. Member
  • ****
  • Posts: 335
Reply #1 on: Jun 30, 2018
Answer to Question 1

b

Answer to Question 2

The price elasticity of demand measures buyer responsiveness to a price change. If the price elasticity of demand coefficient equals 1.2, this means that for every 1 percent change in price there will be a 1.2 percent change in the quantity demanded in the opposite direction. This implies that consumers are relatively responsive to a change in the price and therefore the demand for this product is elastic.


fnuegbu

  • Member
  • Posts: 539
Reply 2 on: Jun 30, 2018
:D TYSM

irishcancer18

  • Member
  • Posts: 310
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Did you know?

Excessive alcohol use costs the country approximately $235 billion every year.

Did you know?

According to the Migraine Research Foundation, migraines are the third most prevalent illness in the world. Women are most affected (18%), followed by children of both sexes (10%), and men (6%).

Did you know?

Serum cholesterol testing in adults is recommended every 1 to 5 years. People with diabetes and a family history of high cholesterol should be tested even more frequently.

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

In middle childhood, children spend increasing amounts of time with peers and friends. In middle childhood, children spend increasing amounts of time with peers and friends.
China has relied on cheap coal to meet its demand for energy China has relied on cheap coal to meet its demand for energy
To find the derivative use product rule To find the derivative use product rule
The number of phenotypic classes in the F2 generation increases as the number of genes controlling t The number of phenotypic classes in the F2 generation increases as the number of genes controlling t
Markets and Institutions Market Story Problem Markets and Institutions Market Story Problem
Iraqi market Iraqi market
Video: Allergic Rhinitis

For a complete list of videos, visit our video library