This is what he asked:
"Elasticity:IF PED,PES,XED and YED = 1:What does it called?(Each situation)And can u show me all types of Taxes and goods...with the descriptions please....All RIGHT comments are welcome....!Thanks....
Posted by Mr.Lex at 14:57 "
My answers:
In monopoly the demand is inelastic because the monopolist can restrict output and/or rise price. There is less competition and also the MR = 0.
To answer your quetsion Lex:
If those elasticities are 1:
PES - 1 the supply line is going through the point of origin. This means it is UNITARY
PED = 1 = UNITARY. This means that if you raise or drop price then the revenue stays the same
.
If XED = 1: if price goes up by 10% then demand goes up/down by the same amount (you did not say -1 or + 1)
If YED = 1 then the income change and the change in demand are the same.
Now you tell me:
If the supply curve goes through the vertical then supply is elastic - why?
Hello
13 years ago
Thanks for ur help....
ReplyDeleteAnd about ur question....my answer is:Im an AS student and this is the A2 question(which means I don't know)....Kekekeke.....But I will still try to answer it:
If the supply curve goes through the vertical then supply is elastic - why?
Because the supply curve goes through the vertical ,so even the demand = 0 there's still supply,supply still exist...so the supply is elastic....Right...???Im not sure...
And ye....one more question:
ReplyDelete1)What's the point of origin???
2)If XED = 1: if price goes up by 10% then demand goes up/down by the same amount (you did not say -1 or + 1)
XED=1:price goes up by 10% then demand goes UP by 10% right?Thanks again!
The questions about elasticity is AS - we have done this in lessons!
ReplyDeleteIf XED = + 1 then they are....substitutes.
1 and + 1 are the same
Ahhh ye ye....my stupid question....but anyway...What is the final answer for that question?
ReplyDelete