Answer to Question #265580 in Microeconomics for Palesa Sealetsa

Question #265580

explain the relationship between elasticity and revenue


1
Expert's answer
2021-11-14T17:38:31-0500

If demand is elastic at a given price level, then should a company cut its price, the percentage drop in price will result in an even larger percentage increase in the quantity sold—thus raising total revenue.

When price changes in a certain ratio, the sales normally change in a high or low ratio.


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS