Verify the relationships between revenue and levels of elasticity given in the summary box on page 260.

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Verify the relationships between revenue and levels of elasticity given in the summary box on page 260.


Data from summary box on page 260.

Levels of Elasticity and the Effect on Revenue

If demand is elastic [E(p) > 1], revenue R decreases as price p increases.

If demand is inelastic [E(p) < 1], revenue R increases as price p increases.

If demand is of unit elasticity [E(p) = 1], revenue is unaffected by a small increase in price.

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Calculus For Business, Economics And The Social And Life Sciences

ISBN: 9780073532387

11th Brief Edition

Authors: Laurence Hoffmann, Gerald Bradley, David Sobecki, Michael Price

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