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Introduction to Economics 1
INTRODUCTION TO ECONOMICS I (İKTİSADA GİRİŞ I) - (İNGİLİZCE) Dersi The Theory of Consumer Choice soru cevapları
INTRODUCTION TO ECONOMICS I (İKTİSADA GİRİŞ I) - (İNGİLİZCE) Dersi The Theory of Consumer Choice soru detayı:
SORU:
Explain the cases where we can say that 'demand is elastic'.
CEVAP:
When the marginal utility decreases slowly as more of a good is consumed, a fall in the good’s price requires a large change in consumption to equate the marginal utility per dollar spent on it with the marginal utility per dollar spent on other goods. As a result, the quantity demanded increases significantly and so demand is elastic.