MICROECONOMICS-MINDTAP (1 TERM)
MICROECONOMICS-MINDTAP (1 TERM)
13th Edition
ISBN: 9780357686942
Author: Arnold
Publisher: CENGAGE L
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Chapter 6, Problem 1QP
To determine

Identify the demand elasticity between prices.

Expert Solution & Answer
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Explanation of Solution

The demand elasticity of a commodity can be identified through the variations in the total revenue (TR) as per the changes in price. If the TR of a commodity increase between two prices, then the commodity has an inelastic demand. As per the changes in price, if the TR declines or remains as constant, then the demand will be elastic and unit elastic, respectively.

Economics Concept Introduction

Elasticity of demand: Elasticity of demand refers to the responsiveness or the change in quantity demanded due to the change in price.

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