Economics question....

timer Asked: Aug 11th, 2014
account_balance_wallet $5

Question Description

Explain how own-price elasticity of demand, price changes, and total revenue are related. Provide an example.

Tutor Answer

Gabriel E
School: Duke University

It is a measure used in economics to show the responsiveness or elasticity, of the quantity demanded of a good or service to change its price. Revenue is maximized when price is set so that price of elasticity is exactly one. Price elasticities are almost always negative, although analysts tend to ignore the sign even though this can lead to "ambiguity." 

flag Report DMCA

Thank you! Reasonably priced given the quality not just of the tutors but the moderators too. They were helpful and accommodating given my needs.

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors