If the elasticity of demand were positive what would this imply about the shape of the demandcurve? Why is it that we are unlikely to find a price elasticity of demand with a positive value?
What will be an ideal response?
If the price elasticity of demand were positive this would mean that demand curve is upward-sloping. We are unlikely to find a price elasticity of demand that is positive because this would contradict the law of demand.
You might also like to view...
If the exchange rate changes from $0.08 = 1 mexican peso to $0.09 = 1 mexican peso, then
A) the peso has depreciated and the dollar has appreciated. B) both the peso and dollar have appreciated. C) both the peso and dollar have depreciated. D) the peso has appreciated and the dollar has depreciated.
An analysis of market failure and government failure indicates
What will be an ideal response?
An example of intangible capital is
A. a flower garden. B. a trained apprenticeship program. C. a vacation house. D. a book.
Which one of the following terms of trade is most likely to produce mutually-beneficial exchange between the two nations?
If Nations Quirk and Turk only produce aluminum or oil, the table below shows the maximum output of each nation:
A. 0.5 unit of oil for 1 unit of aluminum
B. 0.5 unit of oil for 2 units of aluminum
C. 1 unit of oil for 0.4 unit of aluminum
D. 1 unit of oil for 4 units of aluminum