Economics question....

Anonymous
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
Review

Anonymous
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