Question

Price elasticity of demand.Tell whether is elastic,perfectly inelastic,perfectly elastic, inelastic,or unit elastic. And what would happen to total revenue if a firm raised its price in each elasticity range identified.a.Ed=2.5 b.Ed=1.0 c.Ed=~ D. Ed=0.8


Elasticity of demand is the (%change in Q)/(%change in P). Greater then 1.0 is elastic, less than 1.0 is inelastic. While elasticities of demand are often expressed as positive numbers, in fact, they all should be negative. (When price goes up, quantity demanded falls.)

Answer 1

human behaviour

Answer 2

Price elasticity of demand.Tell whether is elastic,perfectly inelastic,perfectly elastic, inelastic,or unit elastic. And what would happen to total revenue if a firm raised its price in each elasticity range identified.a.Ed=2.5 b.Ed=1.0 c.Ed=~ D. Ed=0.8