Relation between elastic and
Explanation of Solution
Total revenue is the amount of money that a firm, company, or an industry actually receives during a specific period. Elasticity is the change in quantity demanded in response to change in price. Therefore, a change in price or quantity will affect the total revenue.
When the
Relatively elastic demand: Relatively elastic demand refers to the high responsiveness or the change in quantity demanded due to a small change in price.
Relatively inelastic demand: Relatively inelastic of demand refers to the small responsiveness or the change in quantity demanded due to a high change in price.
Total revenue (TR): TR is the amount of money that a firm, company, or an industry actually receives during a specific period.
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