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Economics Homework Ten - Model (view source)
Revision as of 16:40, December 2, 2009
, 16:40, December 2, 2009done
:::<math>\frac{-Q}{P}X\frac{P}{Q}</math>
:::<math>\frac{-Q}{P}X\frac{P}{Q}</math>
and thus P<sub>ed</sub>= -1. By convention, because price elasticity is always negative, the negative sign is dropped and we have our answer: elasticity is 1.
and thus P<sub>ed</sub>= -1. By convention, because price elasticity of demand for one good is always negative, the negative sign is dropped and we have our answer: price elasticity is 1. (Price cross-elasticity of demand may be positive or negative, depending on whether the two goods are substitutes or complements.)
9. Provide, in your own words, the best definition of "public good" that you can.
9. Provide, in your own words, the best definition of "public good" that you can.