The flatter the demand curve, the ________.
lower the elasticity of demand
higher the elasticity of demand
When the demand function is flatter, it suggests a smaller percentage change in price resulting in a greater percentage change in quantity demanded. Hence the elasticity is greater than 1 and so we have a higher the elasticity of demand for flatter demand
Select higher the elasticity of demand
The flatter the demand curve, the ________. lower the elasticity of demand higher the elasticity of...
Question 13 4 pts If the slope of the AS curve were lower (curve flatter), • Would the immediate response of output to an aggregate demand shock (shock to a) be stronger or weaker? Explain the intuition behind each answer.
2) Why is the firm’s demand curve flatter than the total market demand curve in monopolistic competition? Suppose a monopolistically competitive firm is making a profit in the short run. What will happen to its demand curve in long run equilibrium ? What could this firm do to affect what happens to its demand curve? Explain in detail.
This question is related to utility and elasticity. Each point along a demand curve has its own point elasticity. So, moving along a linear negative-sloped demand curve from top to bottom (i.e. from higher price to lower price), will the point elasticity become more elastic or more inelastic? Explain your answer.
explain why The elasticity of demand for labor is higher the higher the elasticity of supply of the substitutable input.
PLEASE ANSWER ALL QUESTIONS. 1. Elasticity of demand for pharmaceuticals is - 0.44 Elasticity of demand for specialist visits = - 0.32 By definition describe the elasticity of demand (elastic, inelastic, or unitary elastic) for pharmaceuticals. By definition describe the elasticity of demand (elastic, inelastic, or unitary elastic) for specialist visits. Which demand is more elastic? Which demand is more inelastic? Given the elasticities in number 1, which of the 2 goods (pharmaceuticals or specialist visits) will have a flatter...
The price elasticity of demand for a downward sloping straight line demand curve is: a. constant as the price changes along the curve b. a number ranging from negative infinity to positive infinity c. given by the ratio of price and quantity d. lower in absolute value as the price drops along the curve
2) Elasticity Return to the demand curve from question (1), that is, P = -0.4QD + 120 a) What is the elasticity of demand going from P = 100 to P = 35? b) What is the elasticity of demand going from P = 35 to P = 100? c) Explain the discrepancy in the amounts d) What is one alternative measurement method that addresses the discrepancy? Calculate the elasticity using this method. e) Is demand elastic or inelastic? If...
3. Suppose a straight-line, downward-sloping demand curve shifts right due to an increase in consumer preferences. Is the price elasticity of demand higher, lower, or the same between any two prices on the new (higher) demand curve than on the old (lower) demand curve?
Question 6 (1 point) A vertical demand curve has a price elasticity of demand equal to: a) infinity. b) o at low quantities and 1 at higher quantities c) 1 d) o. 0
Which of the following demand curves has the lowest price elasticity of demand? A demand curve that is horizontal. A demand curve that is nearly vertical (steeply downward sloping). A demand curve that is slightly upward sloping. A demand curve that is nearly horizontal (slightly downward sloping).