The derived demand curve for a product component will be more inelastic

Mathematics

1 answer:

rusak2 [61]3 years ago

7 0

Answer:

B. the more inelastic is the demand for the final product.

Explanation:

Inelastic demand occurs when demand rises by a lower percentage as compared to the percentage of the price drop.

Take for instance, if price drops by 10% and then demand only rises by 4%.

Now, the derived demand curve for a product component will be more inelastic when there's more rises by lower percentages of the final product than price drop. The more inelastic the demand for a product is, the more inelastic the demand derive curve will be.

You might be interested in

Find the radius of convergence, r, of the series. ? n2xn 7 · 14 · 21 · ? · (7n) n = 1

defon

I'm guessing the series is supposed to be

$\displaystyle\sum_{n=1}^\infty\frac{n^2x^n}{7\cdot14\cdot21\cdot\cdots\cdot(7n)}$

By the ratio test, the series converges if the following limit is less than 1.

$\displaystyle\lim_{n\to\infty}\left|\frac{\frac{(n+1)^2x^{n+1}}{7\cdot14\cdot21\cdot\cdots\cdot(7n)\cdot(7(n+1))}}{\frac{n^2x^n}{7\cdot14\cdot21\cdot\cdots\cdot(7n)}}\right|$

The first $n$ terms in the numerator's denominator cancel with the denominator's denominator:

$\displaystyle\lim_{n\to\infty}\left|\frac{\frac{(n+1)^2x^{n+1}}{7(n+1)}}{n^2x^n}\right|$

$|x^n|$ also cancels out and the remaining factor of $|x|$ can be pulled out of the limit (as it doesn't depend on $n$ ).

$\displaystyle|x|\lim_{n\to\infty}\left|\frac{\frac{(n+1)^2}{7(n+1)}}{n^2}\right|=|x|\lim_{n\to\infty}\frac{|n+1|}{7n^2}=0$

which means the series converges everywhere (independently of $x$ ), and so the radius of convergence is infinite.