Determine Whether the Given Values of the Variables Are Solutions $\frac { a x - b x } { b x - a } = \frac { b x + a } { - a - b }$

question 58

Essay

Determine whether the given values of the variables are solutions of the equation. $\frac { a x - b x } { b x - a } = \frac { b x + a } { - a - b }$
(a)
$x = 1$
(b)
$x = - a / b$

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Definitions:

Economic Profits

Profits exceeding the opportunity costs of all resources employed, indicating above-normal returns.

Purely Competitive

Another term for perfectly competitive, describing a market with no single buyer or seller able to influence prices.

Demand Curves

Graphical representations of the relationship between the price of a good and the quantity demanded by consumers at various prices.

Elastic

Describes a situation where the quantity demanded or supplied changes significantly when the price changes.