marshall price elasticity of demand function D1 (p, M) = 1/4 M - 5P1 apply: a) t

Question

marshall price elasticity of demand function D1 (p, M) = 1/4 M - 5P1 apply:

a) that the changes and increasing price P1 from 0 to 0.05 M ranges from - to 0,

b) that changes and increasing price p1 from 0 to 0.05 M ranges from 0 to -.

c) that is constant and equal to -1/4

d) that is constant and equal to -5.

e) that is constant and equal to - 1

2.How to change the optimum value z1 *, z2*, ..., zn * and LTC * , if all input w1, w2, ..., Wn rise to twice its original values and desired output y is not changed?
a) z1 * * z2, ..., zn * and * LTC rise just twice
b) z1 * z2 *, ..., zn * and * LTC increase but not more than twice
c) z1 * z2 *, ..., zn * and * LTC increase at least twice
d) * LTC rise just twice, and Z1 *, Z2 * ... * zn is not changed
e) LTC * not rise more than twice and at least some amount of input Z1 *, Z2 * ... * zn fall.

3.Constant returns to scale mean that
a) with the growing number of one good and the other at a constant amount of good output will grow as fast as the amount of estate
b) a change in the proportional amount of input to output does not change
c) the marginal product of each input to a proportional change in the quantity of input increases in the same proportion
d) the marginal product of each input is a quantity used to this entry does not change
e) in the proportional change in the quantity of input increases output in the same proportion

Explanation / Answer

d) that is constant and equal to -5

d) * LTC rise just twice, and Z1 *, Z2 * ... * zn is not changed

e) in the proportional change in the quantity of input increases output in the same proportion

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