For substitute goods, the cross price elasticity of demand is positive and for goods that are complements, the cross-price elasticity of demand is negative. Answer and Explanation: The formula for calculating the cross price elasticity of deman...
Besides strong demand-related price seasonalities, electricity prices exhibit large spikes, which arise due to non-storability of electricity, non-elasticity of demand and, in case of renewable electricity generation, of supply. The occurrence of positive price spikes is related to supply interruptions...
Why would a monopolist never set a price on a point in the inelastic portion of the demand curve? a. marginal revenue would be negative and therefore well below the marginal cost curve. b. the demand Explain why the profit-maximizing production is found where the marginal ...
After taking the first derivative of H(m) with respect to m, we obtain(A2)dH(m)dm=-K̃Sm2(KR+ARσLgu(k))+h̃ShR12(hRD(p)(KR+ARσLgu(k))1/2. Further, for a fixed value of w, H(m) is a convex function in m, becaused2H(m)dm2=2K̃Sm3(KR+ARσLgu(k))12(hRD(p...
First, solve the first derivative concerning 𝑙𝑘lk for 𝑈2U2: When 𝑑𝑘<𝑑𝑎𝑣𝑔dk<davg: ∂𝑈2∂𝑙𝑘=−𝜂𝑧max𝑙𝑘+𝜂−𝑝𝑘+𝑖𝑟−2𝜛1𝜃(𝑙𝑘−𝑜𝑟𝑙𝑘)−𝜛2𝛼(𝑝𝑘−𝑟𝑘)𝑟𝑘∂U2∂lk=−ηzmaxlk+η...
First, solve the first derivative concerning 𝑙𝑘lk for 𝑈2U2: When 𝑑𝑘<𝑑𝑎𝑣𝑔dk<davg: ∂𝑈2∂𝑙𝑘=−𝜂𝑧max𝑙𝑘+𝜂−𝑝𝑘+𝑖𝑟−2𝜛1𝜃(𝑙𝑘−𝑜𝑟𝑙𝑘)−𝜛2𝛼(𝑝𝑘−𝑟𝑘)𝑟𝑘∂U2∂lk=−ηzmaxlk+η...
(E-NAM) and futures and spot prices on the National Commodity and Derivative Exchange (NCDEX) in the Indian agricultural commodity market. The Johansen Cointegration, Vector Error Correction (VEC), Granger causality tests, and bivariate GARCH models were applied to daily data from April 2016 to ...