Question

Relationship between total revenue and price elasticity of demand and explain how even due to good...

Relationship between total revenue and price elasticity of demand and explain how even due to good weather some farmers are worse off?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Relation in total revenue and price elasticity of demand

In case of elastic demand- In case of elastic demand, total revenue falls. The reason is that in case of elastic demand, seller can sell maximum output at low price. Due to low price , total revenue falls.

In case of inelastic demand- in this total revenue increases. The reason is that in case of inelastic demand firms can sell less output at high price. Due to high price , total revenue increases.

There is situation when even of good weather some farmers are worst off. It is in case of elastic demand

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Define the price elasticity of demand and explain how total revenue is related to price elasticity.
Define the price elasticity of demand and explain how total revenue is related to price elasticity.
If a mortician was aware of the relationship between elasticity of demand and total revenue, how...
If a mortician was aware of the relationship between elasticity of demand and total revenue, how might he or she take advantage of this information?
Explain the price elasticity on a demand curve and state its relationship to a firm’s total...
Explain the price elasticity on a demand curve and state its relationship to a firm’s total revenue and relationship to the consumers total expenditure?
1. Explain the difference between price elasticity of demand and income elasticity of demand. 2. If...
1. Explain the difference between price elasticity of demand and income elasticity of demand. 2. If demand is elastic, how will an increase in price change total revenue?
Explain how to use the total revenue test to determine the price-elasticity of demand range.
Explain how to use the total revenue test to determine the price-elasticity of demand range.
If the demand for one good increases as the price of another good increases, how would...
If the demand for one good increases as the price of another good increases, how would we label the relationship between these goods? The two goods are demand complements; The cross-price elasticity of demand is negative between the two goods The two goods are demand substitutes; The cross-price elasticity of demand is negative between the two goods. The two goods are demand complements; The cross-price elasticity of demand is positive between the two goods. The two goods are demand substitutes;...
• The price elasticity of demand is |-2| • The income elasticity of demand is -1.5...
• The price elasticity of demand is |-2| • The income elasticity of demand is -1.5 • The cross-price elasticity of demand between your good and a related good is -3.5 a. Describe what would happen to total revenue for your good if you raised your price by 10 % b. Describe what would happen to total revenue for your good if a recession lowered incomes by 10% c. Describe what would happen to total revenue for your good if...
5. Identify how total revenue changes if Demand is inelastic and price falls; a. Total revenue...
5. Identify how total revenue changes if Demand is inelastic and price falls; a. Total revenue falls b. Total revenue rises c. Total revenue remains constant d. None of the above 6. Identify how total revenue changes if Demand is elastic and price falls; a. Total revenue falls b. Total revenue rises c. Total revenue remains constant d. None of the above. ' 7. In the following pair of goods, which has the higher price elasticity of demand: (a) Airline...
Assume the price elasticity of demand coefficient for wheat is 0.5. Using your knowledge of price...
Assume the price elasticity of demand coefficient for wheat is 0.5. Using your knowledge of price elasticity of demand carefully explain how an increase in the price of wheat might affect the total revenue of farmers.
. What is the relationship between price elasticity and position on the demand curve? For example,...
. What is the relationship between price elasticity and position on the demand curve? For example, as you move up the demand curve to higher prices and lower quantities, what happens to the measured elasticity? How would you explain that?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT