Do you want BuboFlash to help you learning these things? Or do you want to add or correct something? Click here to log in or create user.



Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
If the law of demand holds, own-price elasticity of demand will always be [...], because a [...] in price will be associated with a [...] in quantity demanded, but it can be either elastic or inelastic.
Answer
negative

rise

fall

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
If the law of demand holds, own-price elasticity of demand will always be [...], because a [...] in price will be associated with a [...] in quantity demanded, but it can be either elastic or inelastic.
Answer
?

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
If the law of demand holds, own-price elasticity of demand will always be [...], because a [...] in price will be associated with a [...] in quantity demanded, but it can be either elastic or inelastic.
Answer
negative

rise

fall
If you want to change selection, open original toplevel document below and click on "Move attachment"

Parent (intermediate) annotation

Open it
Note that if the law of demand holds, own-price elasticity of demand will always be negative, because a rise in price will be associated with a fall in quantity demanded, but it can be either elastic or inelastic.

Original toplevel document

4.1. Own-Price Elasticity of Demand
than one, demand is defined to be inelastic. When that magnitude is greater than one, demand is defined to be elastic . And when the elasticity coefficient is equal to negative one, demand is said to be unit elastic , or unitary elastic . <span>Note that if the law of demand holds, own-price elasticity of demand will always be negative, because a rise in price will be associated with a fall in quantity demanded, but it can be either elastic or inelastic. In our hypothetical example, suppose the price of gasoline was very high, say $15 per gallon. In this case, the elasticity coefficient would be −1.154. Therefore, because the magnitude

Summary

statusnot learnedmeasured difficulty37% [default]last interval [days]               
repetition number in this series0memorised on               scheduled repetition               
scheduled repetition interval               last repetition or drill

Details

No repetitions


Discussion

Do you want to join discussion? Click here to log in or create user.