Explain Why There Is a Total Revenue Test for the Price

question 223

Essay

Explain why there is a total revenue test for the price elasticity of demand, but there is no total revenue test for price elasticity of supply.

Understand the calculation and interpretation of total percentage return on investments.

Grasp the concept of confidence intervals and their application in financial returns.

Calculate and interpret capital gains yield.

Understand the concept of geometric average rate of return and how to calculate it.

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Definitions:

Corporation

A form of business organization that is owned by owners, called shareholders, who have no inherent right to manage the business, and is managed by a board of directors that is elected by the shareholders.

Takings Clause

Part of the Fifth Amendment of the U.S. Constitution, stating that private property cannot be taken for public use without just compensation.

Eminent Domain

A governmental power whereby the government can take or condemn private property for a public purpose on the payment of just compensation.

Private Property

Land or possessions owned by individuals or corporations, not by the government or public as a whole.