Sunday

Price Elasticity of Demand

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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