# Tag Info

Accepted

• 6,718

### Does Modern Monetary Theory (MMT) provide a useful insight into how to manage the economy?

Does Modern Monetary Theory (MMT) provide a useful insight into how to manage the economy? That depends on your definition of MMT, because it is not generally agreed on what it even is. You will find ...
• 41.6k

### Intuition - Why does elasticity vary along a curve?

Say elasticity (of demand) gives the percentage change in quantity demanded in response to a one percent change in price. Since the change is porcentual, if you are in a point of the demand where ...
• 840

### What are Giffen Goods?

The usual textbook example of a Giffen good (i.e. a good whose demand curve slopes upwards) is the Irish potato famine. The idea is that as potatoes (a staple food) became more expensive, people could ...
• 16.6k
Accepted

• 41.6k

### First order condition of log functions in general and interpretation

The $\gamma$ on the RHS comes from applying chain rule when differentiating the second term with respect to $a_i$. Regarding elasticity, note that with a differentiable function $f$, the ratio \$f'(x)/...
• 14.3k

### Microeconomics question on elasticity

The answer by Herr K is correct so far as it goes and is probably what your teacher is looking for, but it's worth adding the following. Walt and Jessie place their orders before looking at the price. ...
• 6,718