Along a straight-line demand curve, why does the price elasticity of demand grow steadily smaller as we move from left to right?
As we move from left to right, the quantity keeps getting larger, so that a given numerical change in quantity becomes an ever-smaller percentage change. But, simultaneously, the price keeps going lower, so that a given numerical change in price becomes an ever-larger percentage change. So, as one moves from left to right along the demand curve, the numerator of the elasticity fraction keeps falling and the denominator keeps growing larger; thus the fraction that is the elasticity formula keeps declining.
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A) i only B) ii only C) iii only D) i and ii E) ii and iii
The actual real interest rate and the expected real interest rate will be identical if
A) pe = p. B) pe > p. C) pe < p. D) none of the above
Refer to the table below. To increase output from 99 to 132 units requires ________ extra employee-hours; to increase output from 132 to 165 units requires ________ extra employee-hours.OutputPer DayNumber ofEmployeeHours Per Day00331662994132716511
A. 11; 18 B. 4; 3 C. 3; 4 D. 7; 11
Describe the background factors that contributed to the Asian financial crisis
What will be an ideal response?