Elasticity of demand is closely related to the slope of the demand curve. The less responsive buyers are to a change in price, the steeper the demand curve will be. Suppose demand is perfectly inelastic, and the supply of the good in question decreases. As a result the equilibrium price in...
government revenue. The greater the elasticity of demand, the greater the gains from trade. If demand is perfectly inelastic, there are no gains from trade. If demand is perfectly inelastic, consumers do not benefit from trade. T,F,F 顯示更多關於...
A perfectly competitive firm maximizes its profit by (A) producing the output at which its price equals marginal revenue. (B) setting its price at the highest level possible. (C) producing the output at which price equals minimum average variable cost. ...