Economics question....

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

Aug 11th, 2014

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." 

Aug 11th, 2014

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Aug 11th, 2014
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Aug 11th, 2014
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