how will you measure coefficient of price elasticity of demand ? What does it show when this coefficient is (a) equal to zero (b) greater than zero and (c) less than unity ?
Answers
Answer:
1. Measuring the Price Elasticity of Demand
The price elasticity of demand (PED) is calculated by dividing the percentage change in quantity demanded by the percentage change in price.
2a. If the correlation coefficient of two variables is zero, there is no linear relationship between the variables. However, this is only for a linear relationship. ... This means that there is no correlation, or relationship, between the two variables.
b. If the correlation coefficient is greater than zero, it is a positive relationship. ... A value of zero indicates that there is no relationship between the two variables. When interpreting correlation, it's important to remember that just because two variables are correlated, it does not mean that one causes the other.
c. Coefficient of friction may be more than 1. It only implies that frictional force is greater than normal force. It does not violate any well established principle. This is in case of silicone rubber.