One of the reasons that price elasticities of demand are always stated as positive numbers is because:
a. the numerators and denominators of the formula are both negative.
b. the numerators and denominators of the formula are both positive.
c. price increases always lead to increases in quantity demanded.
d. price decreases always lead to decreases in quantity demanded.
e. price elasticities are always negative, so we ignore the sign.
e
Economics
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Given that Monika's income exceeds her expenditures, Monika is best described as a
a. saver or as a supplier of funds. b. saver or as a demander of funds. c. borrower or as a supplier of funds. d. borrower or as a demander of funds.
Economics
Explain why it is so important for a business to understand the concept of price elasticity and be able to measure this for its products.
What will be an ideal response?
Economics