Comment on the following statement: "Elasticity is constant along a straight-line demand curve"
What will be an ideal response?
The statement is false. While the slope is constant along a straight line, the elasticity is not. In fact, at high prices (the upper area of a demand curve) the demand is elastic. As price falls (and quantity demanded increases), the price elasticity of demand gets smaller (in absolute value).
Economics
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In a multiplayer game of chicken, there can be no Nash equilibrium
Indicate whether the statement is true or false
Economics
"Missing markets" result from
a. high transactions costs of such markets. b. strict price controls. c. the inability of producers to gain economies of scale. d. foreign countries dominating a domestic market for a product.
Economics