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I assume that when you say "elasticity," you mean "price elasticity of demand."Raise price a little. If total revenue goes up, you're in the INELASTIC region (where absolute value of elasticity is greater than 1). If it goes down, you're in the ELASTIC region.
under total otlay method basically there are 3 other sub methods with the help of which you can calculate the price elasticity of demand.they are: elasticity greater than unity...ep>1 elasticity less than unity,,,,,,,ep<1 elasticity equals to unity....ep=1
According to this method the degree of elasticity of demand is measured by comparing firm's revenue from consumer's total outlay on the goods before the change in the price with after the change in the price.
values of elasticity
Total expenditures depends on the quantity multiplied by the price!
with example explain the concept of of elasticity of supply and interpretating the result graphical and descuse the relationship between price elasticity and suppliers total revenue
I assume that when you say "elasticity," you mean "price elasticity of demand."Raise price a little. If total revenue goes up, you're in the INELASTIC region (where absolute value of elasticity is greater than 1). If it goes down, you're in the ELASTIC region.
under total otlay method basically there are 3 other sub methods with the help of which you can calculate the price elasticity of demand.they are: elasticity greater than unity...ep>1 elasticity less than unity,,,,,,,ep<1 elasticity equals to unity....ep=1
formula for the arc elasticity of demand
According to this method the degree of elasticity of demand is measured by comparing firm's revenue from consumer's total outlay on the goods before the change in the price with after the change in the price.
values of elasticity
Total expenditures depends on the quantity multiplied by the price!
Total expenditures depends on the quantity multiplied by the price!
Total expenditures depends on the quantity multiplied by the price!
calculate the following price elasticity of for a price increase from $5-6, 6-7, 7-8 and verify your answer using the total revenue approach:
calculate the following price elasticity of for a price increase from $5-6, 6-7, 7-8 and verify your answer using the total revenue approach:
we know from total expenditure method of measuring elasticity of demand that if total expenditure remains the same when price changes, elasticity is unitary. rectangular hyperbola is a curve under which all rectangular areas are equal. also, each rectangular area shows total expenditure on the commodity. along the curve, even if price changes, total expenditure remains the same, so rectangular hyperbola shows the elasticity of 1.