The industry elasticity of demand for gadgets is -2, while the own-price elasticity of demand for...
The industry elasticity of demand for gadgets is -2, while the own-price elasticity of demand for an individual gadget firm's product is -6. What is the Rothchild Index ?
Homework Answers
Rothchild Index = Elasticity of demand o the entire market/Elasticity of demand of the firm = -2/-6 = 1/3 = 0.33.
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The industry elasticity of demand for gadgets is -2,
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question 3 3 Question 3 Suppose the own price elasticity of demand for the products of...
question 3
3 Question 3 Suppose the own price elasticity of demand for the products of an industry is (-0.7), and the Rothschild Index is 0.15. What happens to the demand of a representative firm in this industry, if its price increases by 1 %?
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Use
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most closely resembles monopoly
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question 3
3 Question 3 Suppose the own price elasticity of demand for the products of an industry is (-0.7), and the Rothschild Index is 0.15. What happens to the demand of a representative firm in this industry, if its price increases by 1 %?
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the estimated elasticities in Table 7–4 to calculate the Rothschild
index for each industry. Based on these calculations, which
industry most closely resembles perfect competition? Which industry
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