Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer When there is a negative network externality for a good, the demand for that good O A. will be less elastic than it

please answer

image text in transcribed
When there is a negative network externality for a good, the demand for that good O A. will be less elastic than it would have been without the negative network externality. O B. will be just as elastic as it would have been without the negative network externality. O C. may have a degree of elasticity that is more, less or the same as it would have without the negative network externality. O D. will be more elastic than it would have been without the negative network externality. Suppose a statistical study finds that the demand for Brand X automobile tires is Q = 800 -5P, where Q is the number of Brand X tires sold per year (in thousands of tires), and P is the price per tire. How confident would you be that this is an accurate equation for Brand X tire demand? O A. Not very confident because methods other than statistical studies are better at estimating demand equations. O B. Very confident because statistical studies are very accurate. O C. Not very confident because other factors affecting the sales of tires have been left out of the equation. O D. Very confident because the negative sign in front of price (P) means the demand curve has a negative slope, as it should

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Business Law

Authors: Jeffrey F Beatty, Susan S Samuelson

3rd Edition

0324537123, 9780324537123

More Books

Students also viewed these Economics questions

Question

1. What does this mean for me?

Answered: 1 week ago