Explain the Geometric Method of Measurement of Elasticity
Explain the Geometric Method of Measurement of Elasticity.
Expert
Geometric or Point method: It developed by Marshall. It is used as a measure of the change in quantity demanded in way to a very small change in the price. Under this method we can measure the elasticity at any of given point on a straight line demand curve using the given formula as:ED = Lower section of the Demand curve/Upper section of Demand curve.
In the given diagram, AB is a straight line demand curve along with P as its middle point. Further this is assumed as AB is 6 cm. so,
ED = PB/PA=3/3=1; at point P
ED = P1B/P1A= 4.5/1.5= 3=>1; at point P1
ED = AB/A= 6/0= α (infinity); at point A
ED = P2B/P2A = 1.5/4.5 = 1/3 = <1; at point P2
ED = B/BA = 0/6 = 0; at point B
A firm which provides its workers along with substantial general training tends to: (1) retain such individuals by paying them the relatively highest wage premiums. (2) require workers to sign legal contracts of peonage and indenture. (3) increase wor
Explain Exceptional Demand Curve.
When this purely competitive labor market is firstly in equilibrium at D0L, S0L, an increase within the price of output will result into equilibrium being attained at: (w) D0L, S0L. (x) D1L, S1L. (y) D2L, S1L. (z) D1L, S0L. Q : Define the areas of Scope of Managerial Define the areas of Scope of Managerial /Business Economics?
Define the areas of Scope of Managerial /Business Economics?
Illustrates the reasons for charging skimming price strategy?
Explain the meaning of price.
As per demonstrated in this graph, there average college graduate will earn around: (1) $12,000 yearly. (2) $20,000 yearly. (3) $45,000 yearly. (4) $90,000 yearly. (5) $100,000 yearly. Q : Welfare definition of economics Explain Explain the welfare definition of economics? Why is it criticized?
Explain the welfare definition of economics? Why is it criticized?
The costs of investing within human capital are probably to be borne by the employee when human capital a worker obtains “on the job” is: (1) general. (2) marginal. (3) precise. (4) generic. (5) specific. Q : Signaling and Screening Completing your Completing your degree is probably to be a significant signal which will help you secure a well-paid job along with a bright future if potential employer: (1) want to ensure that job applicants have already obtained important amounts of specific human capital. (2) use
Completing your degree is probably to be a significant signal which will help you secure a well-paid job along with a bright future if potential employer: (1) want to ensure that job applicants have already obtained important amounts of specific human capital. (2) use
18,76,764
1937449 Asked
3,689
Active Tutors
1445955
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!