Question
You are given market data that says when the price of chicken noodle soup is $5, the quantity demanded of chicken noodle soup is 60
You are given market data that says when the price of chicken noodle soup is $5, the quantity demanded of chicken noodle soup is 60 bags. When the price of chicken noodle soup is $4, the quantity demanded of chicken noodle soup is 90 bags. Assuming all other things remain the same.
How would the following changes in price and elasticity of demand affect the total revenue of a product? That is, would total revenue increase, decrease or remain unchanged? (i) If the price of an inelastic good is falling. (ii) If the price of an elastic goods is rising. (iii) If the price of an unit of elasticity goods is falling.
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