Ask Question
BusinessBusiness
20 April, 23:06

The reason the elasticity changes along the demand curve is because a) percentage changes between larger numbers are smaller than percentage changes between smaller numbers. b) percentage changes between smaller numbers are smaller than percentage changes between large numbers. c) elasticity doesn't change along the demand curve.

+2
Answers (2)
  1. 21 April, 02:39
    0
    A. percentage changes between larger numbers and smaller than percentage changes between smaller numbers
  2. 21 April, 02:41
    0
    a) percentage changes between larger numbers are smalle

    than

    percentage changes between smaller numbers

    Explanation:

    "The price elasticity of demand (PED) captures how price-sensitive consumers are for a given product or service by measuring the responsiveness of quantity demanded to changes in the good's own price."

    "The formula usually yields a negative value because of the inverse relationship between price and quantity demanded. However, economists often disregard the negative sign and report the elasticity as an absolute value."

    "When PED is greater than one, demand is elastic. This can be interpreted as consumers being very sensitive to changes in price: a 1% increase in price will lead to a drop in quantity demanded of more than 1%.

    When PED is less than one, demand is inelastic. This can be interpreted as consumers being insensitive to changes in price: a 1% increase in price will lead to a drop in quantity demanded of less than 1%."

    Reference: Boundless Economics. "Price Elasticity on Demand." Lumen, 2019
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The reason the elasticity changes along the demand curve is because a) percentage changes between larger numbers are smaller than ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Galen Company income under variable costing is $1,050,000. Fixed production costs in ending inventory are $300,000 and $250,000 in beginning inventory. What is Galen Company's income under absorption costing?
Answers (1)
Although many studies recommend that personnel be assigned full time to projects, very few companies assign employees full time to projects? Why do you think this occurs?
Answers (1)
Veronica's dress shop marks down a pair of shoes 15% when the customer purchases the shoes with a dress or pantsuit. the sale price of the shoes was $59.00. how much would the shoes cost if purchased alone?
Answers (1)
You are a manager of a large businesses enterprise. explain how you would address issues of equality, respect and dignity in your business
Answers (1)
Unadjusted net income equals $ 8,500. Calculate what net income will be after the following adjustments: (1) Salaries payable to employees, $ 550 (2) Interest due on note payable at the bank, $ 90 (3) Unearned revenue that has been earned, $ 900 (4)
Answers (1)
New Questions in Business
Hart Corp. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IRR can be less than the WACC or negative, in both cases it will be rejected.
Answers (1)
Pacific Cruise Lines is a defendant in litigation involving a swimming accident on one of its three cruise ships. Required:1. The likelihood of a payment occurring is probable, and the estimated amount is $1.3 million. 2.
Answers (1)
A material weakness is a situation in which Multiple Choice A) There is a remote likelihood that a material misstatement would be detected on a timely basis.
Answers (1)
In latvia, only one six-lane highway exists, connecting riga, its capital, with moscow. otherwise, the roads are two lanes and many are made of cobblestones or bricks.
Answers (1)
When the government injects money into the economy, consumers may have more disposable income, which may lead to higher unemployment. higher production lower production. increases in taxes.
Answers (2)
Home » Business » The reason the elasticity changes along the demand curve is because a) percentage changes between larger numbers are smaller than percentage changes between smaller numbers.
Sign Up Forgot Password?