Price = £2
Quantity demanded = 100
Price now changes to £1.50
Demand rises to 140.
Total revenue has increased - does this mean demand is elastic?
Try calculating elasticity of demand?
Price = £4
Demand = 200
Price rises to £8
Demand is 100
Revenue stays the same - but is this what a calculation of elasticity of demand gives us?
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use arc elasticity - it will be ok
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