Macroeconomics
How can inconsistencies in elasticity calculations be addressed?
What does a price elasticity of demand value of -1.2 indicate?
If the price of a product increases by 15% and the quantity demanded decreases by 30%, what is the price elasticity of demand?
How can using average values in the denominator help achieve consistent elasticity results?
Why might the basic percentage change formula yield different elasticity results when the direction of price change is reversed?
What is a limitation of using the basic percentage change formula for elasticity calculations?
What is the first step in applying the percentage change formula?
A 50% increase in the price of a luxury car leads to a 60% decrease in quantity demanded. What does this imply about the elasticity of luxury car demand?
What is the advantage of using the midpoint formula in elasticity calculations?
What is the elasticity classification if the elasticity value is 1?
