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Все вопросы
- If the absolute value of the elasticity of demand is … than 1 at some point, we say that demand is inelastic at that point. If the absolute value of elasticity is greater than 1 at some point, we say demand is elastic at that point. If the absolute value of the elasticity of demand at some point is exactly 1, we say that the demand has unitary elasticity at that point. #161
- If demand is elastic at some point, then an increase in quantity will result in a reduction in revenue. #162
- The marginal revenue is the extra revenue one gets from increasing the quantity sold. The formula relating marginal revenue and elasticity is MR = p[1 + 1/E ] = p[1 − 1/|E |]. #163
- If the inverse demand curve is a linear function p(q) = a − bq, then the marginal revenue is given by MR = a − 2bq. #164
- Price elasticity measures the responsiveness of the quantity demanded to income. It is formally defined as the percent change in quantity divided by the percent change in income. #165
- Economists call a person’s maximum willingness to pay for something that person’s …. #166
- A normal good is one for which an increase in income leads to an increase in demand; so for this sort of good the income elasticity of demand is positive. #167
- We can use the … set and indifference curve apparatus developed earlier to examine the choice of how much money to invest in risky and riskless assets. #168
- The marginal rate of substitution between … and return will have to equal the slope of the budget line. This slope is known as the price of risk. #169
- The amount of … present in an asset depends to a large extent on its correlation with other assets. An asset that moves opposite the direction of other assets helps to reduce the overall risk of your portfolio. #170