When price and total revenue move in the same direction demand is?If price and total revenue move in the same direction, then demand is Inelastic. If you decrease the good's price, a large increase occurs in quantity demanded, and total revenue increases.
Why do price and total revenue go in the same direction when the demand for the good is inelastic?Why do price & total revenue go in the same direction when the demand for the product is inelastic? Elastic items aren't necessary, so when prices go up or down, quantity demanded also changes.
When demand is elastic price and total revenue?If price and quantity demanded change by the same percentage (i.e., if demand is unit price elastic), then total revenue does not change.
What is the effect on total revenue if demand is inelastic and price rises?More Overall Revenue
On the other hand, if the price for an inelastic good is increased and the demand does not change, the total revenue increases due to the higher price and static quantity demanded. However, price increases typically do lead to a small decrease in quantity demanded.
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