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29 Sep 2019
1. Explain the law of diminishing marginal utility, and give an example to illustrate it.
2. If demand is elastic and price is raised, what happens to total revenue? Can you prove this?
3. Estimate your elasticity of demand for (a) gasoline; (b) cigarettes; (c) video rentals.
4. Why is industry supply more elastic in the long run than in the short run, and more elastic in the short run than in the market period?
5. How do the relative elasticities of demand and supply affect the relative tax burdens of the buyer and the seller?
6. What are the major determinants of the elasticity of demand?
1. Explain the law of diminishing marginal utility, and give an example to illustrate it.
2. If demand is elastic and price is raised, what happens to total revenue? Can you prove this?
3. Estimate your elasticity of demand for (a) gasoline; (b) cigarettes; (c) video rentals.
4. Why is industry supply more elastic in the long run than in the short run, and more elastic in the short run than in the market period?
5. How do the relative elasticities of demand and supply affect the relative tax burdens of the buyer and the seller?
6. What are the major determinants of the elasticity of demand?
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Sonal BahlLv10
29 Sep 2019
25 Nov 2020
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