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If the percentage change in price is 10 percent and the demand is elastic, how would...

If the percentage change in price is 10 percent and the demand is elastic, how would the quantity demanded percentage change?

If a decrease in price increases total revenue, what can you determine about the elasticity of demand for the good?

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Ans: If the percentage change in price is 10 percent and the demand is elastic, the quantity demanded percentage would be more than 10 percent. Elastic demand means a small change in price leads more change in quantity demanded. so the percentage change in quantity demanded is more than the percentage in its price.

Ans: If a decrease in price increases total revenue, we can say that the elasticity of demand for the good is elastic. A decrease in price leads more quantity demanded in case of elastic demand. As a result the total revenue will increase .

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