Economics
Economics question....

Question Description

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

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Final Answer

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." 

Gabriel E (1551)
Duke University

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