It appears some students in this website are confused about elasticity of demand and the slope of the demand curve when they are trying to figure out why rectangular hyperbola comes up in case of unitary demand curve. First, they don't know that RH can be depicted in a positive quadrant of price,quantity plane. Secondly, they make the mistake that the slope of RH is constant at -1. Two points could help them: first, e=1 at each and every point of the RH, because the tangent at any point shows lower segment=upper segment (another geometric definition of e); yet slopes at different points,dQ/dP, are different; second, e is not slope but [(Slope)(P/Q)]in absolute terms. Caveat: only if we measure (log P) along the horizontal axis and (log Q) up the vertical axis, can we then say slope equals elasticity --in which case RH on P,Q plane is transformed into a straight-line demand curve [with slope= -tan 45 deg] on (log Q),(logP) plane, and e= -d(log Q)/d(log P). [By the way, logs are not used in college textbooks --although that is helpful in econometric estimation of elasticity viewed as an exponent of P, when demand equation is transformed into log-linear form.] I have not found the geometrical explanation I have given in any textbook followed in undergraduate and college classes in Canada (including the book followed in a university where I taught for a short time and in the book followed in George Brown College, Toronto, where I teach.
About 11 years' teaching economics and business studies, and also English, history and elementary French.Practical experience in a development bank, working with international donor agencies like the World Bank and the ADB. Experience in free-lance journalism, including Canada's "National Post."
I teach micro- and macroeconomics at George Brown College (continuing education), Toronto, ON, Canada.
Many articles and editorials, on different subjects, in English newspapers. Recently an applied Major Research Paper, based on a synthesis of the Solow growth model and the Lewis two-sector model, has be accepted by Ryerson University, Toronto. Professors Thomas Barbiero and Eric Cam, Ryerson University, accepted the paper.
Master degree in Interantional Economics and Finance and diploma with honours in Business Administration from Canada.
Received First Prize in an inter-university Literary Contest.
|Prashant S Akerkar||08/17/16||10||10||10||Dear Prof Raza Thanks. Prashant|
|Prashant S Akerkar||08/07/16||10||10||10||Dear Prof Raza Thanks. Prashant|
|Prashant S Akerkar||08/06/16||10||10||10||Dear Prof Raza Thanks. Prashant|
|Prashant S Akerkar||08/05/16||10||10||10||Dear Prof Raza Thanks. Prashant|
|Prashant S Akerkar||07/19/16||10||10||10||Dear Prof Raza Thanks. Prashant|
Hi Prashant, This is a deep question as it is difficult for anybody to pinpoint what should be the most influencing factor for the Reserve Bank of India to make in connection with decision-making regarding
Hi Prashant, This is an interesting question relevant to the modern economies coming up in the fold of a “global village.” Trading on the stock exchanges would have been extremely limited a few
Hi Prashant, I am sorry that I was a trifle busy and could not attend to your query earlier. Actually, the bank normally does not object to black signature, though blue signature would be to your
Dear Prashant, It is good that you have asked this question about what color of pen ink should be used in putting signature on a bank cheque. As you will come to know at the end of this answer, it is
Hi Prashant, Please clarify whether you want to know if the color of signature should be blue/black or the page of the cheque should be blue/blac. Thanks.