Welcome to Westonci.ca, where finding answers to your questions is made simple by our community of experts. Join our Q&A platform and get accurate answers to all your questions from professionals across multiple disciplines. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.
Sagot :
Answer:
doesn't change
increases
decreases
decreases
increase
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
a. Demand is unit elastic and if price increases, quantity demanded would change by the same amount and total revenue would remain the same
b. Demand is inelastic. If prices increases, there would be little or no change in quantity demanded and revenue would increase
c. Demand is elastic. Increase in price would lead to a reduction in quantity demanded and total revenue would fall
Demand is inelastic, if prices are decreased, there would be little or no change in quantity demanded and revenue would fall
Demand is elastic. A decrease in price would increase the quantity demanded and total revenue would rise
Thank you for trusting us with your questions. We're here to help you find accurate answers quickly and efficiently. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.
