Question: 3. Consider two variables that change over time, which we will denote as Numerator and Denominator. Consider also a combination of the two variables, denoted

3. Consider two variables that change over time, which we will denote as Numerator and Denominator. Consider also a combination of the two variables, denoted as Ratio, formed by the formula:

Ratio Numerator Denominator

a. If both Numerator and Denominator are increasing over time, what must be true if Ratio is to rise over time?

b. If both Numerator and Denominator are decreasing over time, what must be true if Ratio is to rise over time?

c. If Ratio is not changing over time, what must be true about the behavior of Numerator and Denominator over time, and relative to each other?
Numerator Denominator

Ratio Numerator Denominator

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Microeconomics Principles Applications Questions!