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Showing posts with the label IESShow All
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IES
IES - Demand Elasticity
IES (Indian Economics Service) - [General Economics Paper - I (Section A) Question - 1 (a) 2022] Show that the ordinary demand curve will have a greater demand elasticity than the compensated demand curve. Answer: The ordinary demand curve shows the relationship between the quantity demanded of a good or service and its price, holding all other factors constant. T…
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IES
IES - Lerner Index of Monopoly Power
IES (Indian Economics Service) - [General Economics Paper - I (Section A) Question - 1 (b) 2022] Discuss the Lerner Index of monopoly power ? Answer : The Lerner Index is a measure of the degree of monopoly power in a market. It is named after economist Abba Lerner, who developed the concept in the 1940s. The Lerner Index is calculated by dividing the difference…
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