Inelastic demand Elasticity is less than 1 Price 1.A22%$5|… Increase In price…4r…… Demand 90100 Quantity 2.leads to a 11% decrease in quantity
Inelastic Demand - Elasticity is less than 1 Quantity Price 4 1. A 22%$5 increase in price... Demand 90 100 2. ...leads to a 11% decrease in quantity
Unit elastic demand Elasticity equals 1 Price 1.A229$5 Increase In price…4}……………… Demand 80 100 Q uan Itit 2.leads to a 22%o decrease in quantity
Unit Elastic Demand - Elasticity equals 1 Quantity Price 4 1. A 22%$5 increase in price... Demand 80 100 2. ...leads to a 22% decrease in quantity
Elastic demand elasticity is greater than 1 Price 1.A22% Increase 5 n price. 4 Demand 50 100 Quantity 2.leads to a 67% decrease in quantity
Elastic Demand - Elasticity is greater than 1 Quantity Price 4 $ 5 1. A 22% increase in price... Demand 50 100 2. ...leads to a 67% decrease in quantity
Perfectly elastic Demand Elasticity equals infinity Price 1. At any price above $4, quantity demanded is zero $4 Demand 2. At exactly $4, consumers will buy any quantity. 3. At a price below $4, Quantity quantity demanded is infinite
Perfectly Elastic Demand - Elasticity equals infinity Quantity Price $4 Demand 1. At any price above $4, quantity demanded is zero. 2. At exactly $4, consumers will buy any quantity. 3. At a price below $4, quantity demanded is infinite
elasticity and Total revenue Total revenue is the amount paid by buyers and received by sellers of a good Computed as the price of the good times the quantity sold TR=PX Q
Elasticity and Total Revenue • Total revenue is the amount paid by buyers and received by sellers of a good. • Computed as the price of the good times the quantity sold. TR = P x Q