Question

When the magnitude of the price elasticity of demand at a point along the linear demand curve for a product is equal to the unit, then this magnitude is higher at any higher price and lower at any lower price.

true or false

Answer #1

**False**

If the value of price elasticity of demand is equal to one it means the proportion of change in quantity demanded is equal to the proportion of change in price and

It will be same on the whole demand curve whether the magnitude is calculated on higher price or lower price

It will be always always constant and equal to
**1**

If the demand is elastic in nature then even there is a small change in the price causes heavy change in the quantity demanded

1) Firms are interested in the magnitude of the price elasticity
of demand coefficient. The magnitude of ?? determines whether the
demand for a good or service is elastic, inelastic or unit elastic.
For the following cases indicate whether demand is elastic,
inelastic or unit elastic. 1 < |??| < ∞ |??| = 1 0 < |??|
< 1 2)
2, What happens to the absolute value of the price elasticity of
demand as you move up a demand curve?

4A
The price elasticity along a negatively sloped linear demand
curve
1 changes at every point
2 is less than 1
3IS INFINITE
4 is equal to 1
5 is zero
28A
If demand curve is more elastic relative to supply
sellers pay a larger portion of the excise tax.
B.
consumer price increases by the amount of the tax.
C.
entire burden of the tax is borne by the sellers.
D.
sellers pay a smaller portion of the excise...

When the magnitude of the price elasticity of demand is greater
than the unit, then
Question 1 options:
price and total revenue (total expenditure) are positively
related.
price and total revenue (total expenditure) are negatively
related.
price and total revenue (total expenditure) are not related.
none of the above is true.

the own price elasticity of demand shows a movement along the
demand curve
True or Flase

The difference between price elasticity of demand and income
elasticity of demand is that
A. income elasticity of demand examines how an individual's
income changes when prices change and the price elasticity of
demand examines how quantity demand changes when price changes.
B. income elasticity measures the responsiveness of income to
changes in supply while price elasticity of demand measures the
responsiveness of demand to a change in price.
C. income elasticity refers to a horizontal shift of the demand...

FOR EACH OF THE FOLLOWING CASES, CALCUALTE THE POINT PRICE
ELASTICITY OF DEMAND, AND STATE WHETHER DEMAND IS ELASTIC,
INELASTIC, OR UNIT ELASTIC. THE DEMAND CURVE IS GIVEN BY
QD=5,000-40PX
A. THE PRICE OF THE PRODUCT IS $40
B. THE PRICE OF THE PRODUCT IS $ 80.
C. THE PRICE OF THE PRODUCT IS $20.

Which of the following is TRUE regarding price elasticity?
a. When demand is inelastic, sellers should lower prices in
order to increase total revenue.
b.Price elasticity does not depend on magnitude and direction of
the contemplated price change.
c.The higher the elasticity, the lesser the volume growth
resulting from a one-percent price reduction.
d.If demand is elastic, sellers assume that lowering the price
will decrease total revenue.
e.Long-run and short-run price elasticity may differ, delaying
the impact of a price...

Given Linear Demand curve: P = a - bX
You may find the point own price elasticity of demand.

Which of the following statements about price elasticity of
demand is correct?
Select one:
a. The higher the price elasticity of demand, the steeper the
demand curve.
b. Inelastic demand implies that there are few close
substitutes.
c. Elastic demand implies a firm's high market power.
d. Price elasticity of demand is equal to the slope of the
demand curve.
e. The higher a firm's markup, the higher the price elasticity
of demand.

The price elasticity of demand is a measure of
A.the shift in the demand curve when price changes
B.the demand for a product holding price constant
C. the quantity demanded at a given price
D. the responsiveness of the quantity demanded to price
changes

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