[Answer] Refer to Figure 24.3. Which of the following statements is true about the price elasticity of demand at price P2?

Answer: The price elasticity is elastic.The price elasticity is unitary.The price elasticity is zero.
Refer to Figure 24.3. Which of the following statements is true about the price elasticity of demand at price P2?

A good’s price elasticity of demand is a measure of how sensitive the quantity demanded of it is to its price . When the price rises quantity demanded falls for almost any good but it falls more for some than for others. The price elasticity gives the percentage change in quantity demanded when there is a one percent increase in price holding everything else constant.

Marginal revenue (or marginal benefit) is a central concept in microeconomics that describes the additional total revenue generated by increasing product sales by 1 unit. To derive the value of marginal revenue it is required to examine the difference between the aggregate benefits a firm received from the quantity of a good and service produced last period and the current period with one …

Price elasticity of demand – Wikipedia

Marginal revenue – Wikipedia

Marginal revenue – Wikipedia

Elasticity (economics) – Wikipedia

Sun Jan 19 2003 13:30:00 GMT-0500 (Eastern Standa…

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