elasticity and Total revenue Pricel $4 PxQ=$400 P (total revenue) Demand 100 Quantity Q
$4 Demand Quantity P 0 Price P x Q = $400 (total revenue) 100 Q Elasticity and Total Revenue
elasticity and Total revenue With an inelastic demand curve an increase in price leads to a decrease in quantity that is proportionately smaller Thus, total revenue increases
With an inelastic demand curve, an increase in price leads to a decrease in quantity that is proportionately smaller. Thus, total revenue increases. Elasticity and Total Revenue