03-16 Elasticity and Total Revenue along a Linear Demand Curve With an inelastic demand curve,an increase in price leads to a decrease in quantity that is proportionately smaller.Thus,total revenue increases. Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 03-16 Elasticity and Total Revenue along a Linear Demand Curve • With an inelastic demand curve, an increase in price leads to a decrease in quantity that is proportionately smaller. Thus, total revenue increases
190 03-17 Elasticity and Total Revenue along a Linear Demand Curve With an elastic demand curve,an increase in the price leads to a decrease in quantity demanded that is proportionately larger.Thus, total revenue decreases. Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 03-17 Elasticity and Total Revenue along a Linear Demand Curve • With an elastic demand curve, an increase in the price leads to a decrease in quantity demanded that is proportionately larger. Thus, total revenue decreases