Asked by Chloe Francis on Jun 19, 2024
Verified
If the equation for the demand curve is q 20 2p, then the ratio of marginal revenue to price is constant as price changes.
Marginal Revenue
The additional income received from selling one more unit of a good or service.
Demand Curve
A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at various prices.
- Understand the concept and calculation of price elasticity of demand.
Verified Answer
SK
sahil kumarJun 26, 2024
Final Answer :
False
Explanation :
The demand curve equation given does not directly imply a constant ratio of marginal revenue to price as price changes, because the marginal revenue depends on the derivative of the demand curve with respect to price, and this relationship can vary depending on the specific form of the demand equation.
Learning Objectives
- Understand the concept and calculation of price elasticity of demand.