The capital that is consumed by an economy or a firm in the production process is known as Depreciation. In economics, depreciation is the gradual decrease in the economic value of the capital stock of a firm, nation or other entity, either through physical depreciation, obsolescence or changes in the demand for the services of the capital in question.
Who propounded the opportunity cost theory of international trade?
Haberler propounded the opportunity cost theory of international trade. Gottfried Haberler has attempted to restate the comparative costs in terms of opportunity cost. He demonstrates that the doctrine of comparative costs can hold valid even if the labour theory of value is discarded. The theory determines the cost of producing a commodity in terms of the alternative production that has to be foregone for producing the commodity in question.
The percentage change in the quantity demanded divided by the percentage change in price is coefficient of elasticity.
So two linear and parallel demand curves will have same coefficient of elasticity and the changes in price w.r.t changes in quantity demanded will be the same.
If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to