Answer to Question #145438 in Economics for Abhineet Singh

Question #145438
What is the relationship between the total revenue of a firm and the price elasticity of demand for a price increase along a linear demand curve? Explain the reason for the relationship.
1
Expert's answer
2020-11-23T05:58:58-0500

For a price increase along a linear demand curve total revenue increases at the inelastic portion and starts decreasing at elastic portion of the demand curve.


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