M
madhuri.kumar
Member
hi
ive been getting my head around a few multiple choice questions..here are a couple of them..
1. If the ratio of marginal revenue to price is 1:2, what is the absolute value of the elasticity of demand ?
soln:2
2.Increase in the absolute value of interest rate sensitivity of investment demand..........INCREASES the absolute value of slope in the IS curve...???!
my understanding is that when investment is interest elastic,the IS curve is flat..im not sure how u would come to a conclusion like this...
any help will be appreciated!!
thanks in advance.
ive been getting my head around a few multiple choice questions..here are a couple of them..
1. If the ratio of marginal revenue to price is 1:2, what is the absolute value of the elasticity of demand ?
soln:2
2.Increase in the absolute value of interest rate sensitivity of investment demand..........INCREASES the absolute value of slope in the IS curve...???!
my understanding is that when investment is interest elastic,the IS curve is flat..im not sure how u would come to a conclusion like this...
any help will be appreciated!!
thanks in advance.