MGEB12H3 Lecture : Chapter 9 cont'd
74 views9 pages
26 Sep 2011
School
Department
Course
Professor
Get access
Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers
Related Documents
Related Questions
4. Elastic, inelastic, and unit-elastic demand.
The following graph shows the demand for a good.
Price; Quantity
W: 140 & 6
X: 90 & 21
Y: 70 & 27
Z: 20 & 42
For each of the regions, use the midpoint method to identify whether the demand for this good is elastic, (approximately) unit elastic, or inelastic.
Region |
Elastic |
Inelastic |
Unit Elastic |
|
---|---|---|---|---|
Between X and Y | Ā | Ā | Ā | Ā |
Between Y and Z | Ā | Ā | Ā | Ā |
Between W and X | Ā | Ā | Ā | Ā |
True or false: The value of the price elasticity of demand is not equal to the slope of the demand curve.
Company X and company Z are planning to merge their business into one and are seeking regulatory approval. What is the most likely reasoning X & Z will use and present to support their planned merger?
Consumers will purchase the same goods of both companies in the same way as before. |
The newly created firm will benefit consumers by continuing to operate as separate companies. |
The newly created firm is able to take advantage of economies of scale. |