Since you have discrete datapoints and want to calculate PED, you will have to make assumptions, like "the data represents the general behavior of the consumption function". (You can also ...

Homothetic goods is not a widely used term (as far as I know). It is not true that when preferences are homothetic $$\frac{\Delta x}{\Delta m} = 1$$ always holds. Instead $$\frac{\Delta x}{\Delta ... View answer 3 votes fall in price arising from the labor savings The price of a product is usually determined in part by its cost. (This holds in almost all theoretical models without strict capacity constraints, even ... View answer 3 votes Short-run implies that some decision variable cannot be free set, it is fixed for a time (in the short-run). In the long-run all variables may be freely set. Let us denote the fixed variable by x. ... View answer Accepted answer 3 votes I typed "shareholders of record" into Google, and I got Stockholder of Record Also known as shareholder of record, record holder or owner, or registered holder, or owner. The stockholder ... View answer 6 votes Calculating a precise strike time without additional details is - in my opinion quite clearly - impossible. On the question of how to do this with additional info/assumptions: A straightforward ... View answer 6 votes You are only required to get Nash equilibria and not sequentially rational/subgame perfect equilibria. Hence Player 2's actions at information sets that do not occur (that do not reflect Player 1's ... View answer Accepted answer 3 votes You are wrong/vague here: the rupee (INR), is appreciating against, say, the USD, it possibly means that there is a high demand for the former. If the rupee becomes more expensive w.r.t. the dollar, ... View answer Accepted answer 5 votes This does not seem to have anything to do with calculus. The idea is that the income not consumed Y_d - C is saved (usually denoted by S). This saving is then lent out to companies (via banks) who ... View answer Accepted answer 1 votes Quoting from the question When the yen being weakened [...] "The automobile won more order as a result..." and more orders made the automobile sector more profitable, hence the higher ... View answer 7 votes The answer to 1. Your conjecture is correct. Consider lotteries A,B where A guarantues a payoff of 1 while B yields 0 or 4, each with 50% probability. B does not SOSD A, as you can easily ... View answer Accepted answer 1 votes (This is an English language question, not an economic one. Next time consider asking at English Language & Usage.) A surprise is negative, if it is a bad surprise (for someone). In this context ... View answer Accepted answer 2 votes Not sure I understand your confusion. Fruits provide external benefits worth X to honeybees, honeybees provide external benefits worth Y to fruits. Knowing all this, farmers and beekeepers agreed ... View answer Accepted answer 5 votes$$ G(z) (z-x) = \int_x^z G(z) dy $$and since G is increasing on [x,z], the right hand side is larger than \int_x^z G(y) dy. View answer Accepted answer 6 votes Quoting your quote, emphasis altered by me: The “theory of the second best” clearly argues that once markets depart at all from perfect competition, efficiency may well be increased by further ... View answer 4 votes You seem to be mistaken in what payoff goes to which player. By convention, the first value goes to the Row player (here P1), and the second value goes to the Column player (here P2). View answer Accepted answer 5 votes Your final line This figure is only for representation. pretty much answers your question. When explaining these concepts you want to draw something that is easy to understand, i.e. does not have ... View answer 1 votes Elastic boycotting would imply that the number of consumers boycotting would increase by more than 1% when unethicalness increases by 1%. A proper answer is nigh-on-impossible, as it is difficult to ... View answer 4 votes In the Varian textbook Intermediate Microeconomics (I am guessing in most micro textbooks), the chapter on Equilibrium discusses price controls in the presence of a demand and supply function. You can ... View answer 2 votes Adding major details, such as information asymmetry to the question after answers are posted is poor form in my opinion. In case the original question is lacking - perhaps because too little time was ... View answer 2 votes I don't see how the government taking X% of a business's profits is stopping the business from increasing prices (or is this just the penalty in the enforcement clause?), so I am going ignore that ... View answer 2 votes When estimating something like substitution, I once ran into an issue that though there were price fluctuations, they were very small, it was likely I would observe noise rather than actual ... View answer 10 votes It might make sense to cut the jobs as it looks like they will be operating at reduced capacity. The article does not say that they could not keep on the workers and "smooth" their yearly ... View answer Accepted answer 32 votes No one is "right" here, there is rarely a "should" in economics, it is not about morals. When making a purchase, you are usually willing to pay an amount x larger than the price ... View answer Accepted answer 7 votes If you start out with €0, then the certainty equivalent of losing €2.5 with probability 1 is -€2.5. Your exercise basically asks you to calculate what difference winning the lottery with a small ... View answer Accepted answer 3 votes The situation is not described by K_A(K_B(3)). A does not know that the draw was 3, and hence does not know that B thinks it is in the set K_B(3). What A does know is that the draw is in set ... View answer 3 votes Seems like the only function f that fits your description$$ \forall i: \frac{\partial f(\mathbf{x})}{\partial x_i} = c_i $$is$$ f(\mathbf{x}) = A + \sum x_i c_i. $$(Frequently f(\mathbf{0}) = 0... View answer Accepted answer 3 votes None if the axiom is to be on preferences, as any smooth utility representation can be monotone transformed into a non-smooth utility function. View answer 3 votes An easy example: When the utility function is$$ U(x,y) = \ln x + y $$and the prices are p_x = p_y = 1, the IOC is kinked at income level I=1:$$ (x,y) = \left\{ \begin{array}{ll} \left( I, 0 \...
They do consider it. The precise mathematical formulation is usually $$-\frac{p_1}{p_2} = \text{MRS}(x_1,x_2)$$ or $$\frac{p_1}{p_2} = \left| \text{MRS}(x_1,x_2) \right|$$ in the basic cases, when ...