Category: Economics

➤ How can a firm estimate whether demand is unit elastic?
Gather price and sales data and compute elasticity with the midpoint or point formula. Run a log-log regression to estimate the elasticity coefficient. Use controlled A/B price tests to observe percent responses. If the estimated elasticity is close to −1 over the relevant range, demand behaves as unit elastic there.

In which of the following countries is cremation most popular?

➤ Why would a sportswriter conclude ticket demand is inelastic?
Visible signs like consistent sellouts, long waitlists, high resale values, and scarce alternatives make inelasticity a reasonable inference. Emotional attachment, stadium capacity limits, and unique live-game experience reduce price sensitivity, so attendance often changes little when management adjusts ticket prices.

➤ Which textile inventions mattered most during the Industrial Revolution?
The spinning jenny, water frame, and power loom transformed yarn and cloth production. These machines raised output, cut costs, and centralized work in factories. Improved carding, mills, and mechanized looms linked to steam power, creating efficient supply chains from raw cotton to finished textiles and spurring investment in industrial machinery.