Refer to Scenario 3 . Compare and discuss the two elasticity estimates computed above
Without doing any more calculations what would you expect to happen to the value of the elasticity estimates as price continues to fall? Assume a linear demand curve.
Elasticity is greater for the higher prices. As price continues to fall we would expect that the elasticity would fall as well.
Economics
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A nation's account with the IMF is called its
A) quota subscription. B) capital account. C) deposit surplus. D) current account.
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If the cost of the negative pollution externality was added to the marginal cost of production, the true cost curve would be
A. above the marginal cost curve for production only. B. vertical. C. steeper than the marginal cost curve for production only. D. to the right of the marginal cost curve for production only.
Economics