Want this question answered?
Price elasticity of demand is used to determine how changes in price will effect total revenue. If demand is elastic(>1) a change in price will result in the opposite change in total revenue.(+P=-TR) When demand is unit elastic(=1) a change in price wont change total revenue. If demand is inelastic a change in price will result in a change in total revenue in the same direction.(+P=+TR)
if a price cut decreases total revenue, demand is elastic. if a price cut decreases total revenue, demand is inelastic. if a price cut leaves total revenue unchanged, demand is unit elastic.
Total sales - Cost of goods sold = Revenue
price = marginal revenue. marginal revenue > average revenue. price > marginal cost. total revenue > marginal co
when price changes it is called inelastic demand and when quantity of demand change that is called elastic of demand.
Price elasticity of demand is used to determine how changes in price will effect total revenue. If demand is elastic(>1) a change in price will result in the opposite change in total revenue.(+P=-TR) When demand is unit elastic(=1) a change in price wont change total revenue. If demand is inelastic a change in price will result in a change in total revenue in the same direction.(+P=+TR)
if a price cut decreases total revenue, demand is elastic. if a price cut decreases total revenue, demand is inelastic. if a price cut leaves total revenue unchanged, demand is unit elastic.
To calculate total revenue you simply multiply the quantity by the price. Total revenue includes expenses; therefore, total revenue isn't the same as profit.
Total sales - Cost of goods sold = Revenue
price = marginal revenue. marginal revenue > average revenue. price > marginal cost. total revenue > marginal co
when price changes it is called inelastic demand and when quantity of demand change that is called elastic of demand.
Total revenue equals the sale price of products multiplued by the total amount of units sold
total revenue variance = actual revenue - standard revenue Total revenue variance (AQ x AP) - (SQ x SP) where AQ is actual quantity (units of service sold), AP is actual price (actually recorded as revenue), SQ is standard quantity, and SP is standard price
Total revenue minus total costs is the total profit of a producer. This can be increased by increasing the price, decreasing the costs while keeping the price constant and/or increasing the sales of the product or service.
on the linear demand curve, demand is elastic at price above the point of unitary elasticity so a price increase will decrease the total revenue.
elastic
increase