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The price of a stock had a change of –3 dollars.Explain how you would use a number line to find the absolute value of –3?
Sample Response: Plot –3 on a number line. Find the distance the point is from 0. –3 is 3 units from zero. The absolute value is the distance from 0. The absolute value of –3 is 3.
What else can I help you with?
When is price elasticity inelastic?
price elasticity=%change in quantity divided by %change in price it's inelastic when the absolute value of price elasticity is between 0 and 1
How do you do percents of change?
% of change : 1. Get the absolute value of the difference of the original price and the new prize. 2. Divide their difference by the original price. 3. Multiply the quotient by 100%
How do you calculate the price elasticity of demand for a product or service?
To calculate the price elasticity of demand for a product or service, you can use the formula: Price Elasticity of Demand ( Change in Quantity Demanded) / ( Change in Price). This formula helps determine how sensitive consumers are to changes in price. A higher absolute value indicates greater sensitivity, while a lower absolute value indicates less sensitivity.
Income Elasticity of Supply and Demand?
The price elasticity of supply (or demand) is the percentage change in supply/demand for a one-percentage change in price. Eg, if the price elasticity is 1, a 1% change in the price of a good causes a 1% drop in price. (Note that elasticity is given in absolute value, since it is usually negative.)
What is the absolute level of a price index?
Price level
How do you find the price elasticity of demand for a product or service?
To find the price elasticity of demand for a product or service, you can use the formula: Price Elasticity of Demand ( Change in Quantity Demanded) / ( Change in Price). This formula helps determine how sensitive consumers are to changes in price. A higher absolute value indicates greater sensitivity to price changes.
What is the term that describes the relationship between a change in price and the resulting change in the number sold?
The term that describes the relationship between a change in price and the resulting change in the number sold is "price elasticity of demand." This concept measures how sensitive the quantity demanded of a good or service is to a change in its price. If demand is elastic, a small change in price leads to a large change in quantity sold; if inelastic, quantity sold changes little despite price changes.
Is the absolute price of a good is the price of that good in terms of another good?
No, the absolute price of a good refers to its price expressed in a specific currency, such as dollars or euros. In contrast, the relative price of a good is its price in terms of another good, representing the opportunity cost of choosing one good over another. Thus, absolute price and relative price are distinct concepts in economics.
When is demand when absolute price elasticity of demand equals 2.5?
Meaning that if prices change by 1%, the change in quantity would be 2.5% (at $100/piece, 1000 goods are consumed. if the price rises to $101, only 975 goods are consumed. And if the price falls to $99, 1025 goods are consumed.)
Is the 'price' in the law of demand an absolute price or relative price?
In the law of demand, the "price" typically refers to the absolute price of a good or service, which is the actual monetary amount required to purchase it. However, this absolute price can influence relative prices, which compare the price of one good to another. Changes in absolute prices can affect consumer choices and demand, reflecting how individuals substitute between goods based on their relative costs. Thus, while the law of demand focuses on absolute prices, it operates within the context of relative prices as well.
If absolute value of price elasticity is greater than 1 then why would an increase in price would lead to a decrease in revenue and a decrease in price will have the opposite effect?
Elasticity is defined as the percentage change in quantity for a given percentage change in price. If price goes up by 1% and quantity goes down by 2%, less revenue is generated, since (1.01*P)* (0.98*Q) < P*Q.
Why is it important to look at a goods relative price as opposed to its absolute price?
so you can save money
