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What questions is the price elasticity of demand designed to answer?
Price elasticity of demand is used to determine how changes in price will effect total revenue. If demand is elastic(>1) a change in price will result in the opposite change in total revenue.(+P=-TR) When demand is unit elastic(=1) a change in price wont change total revenue. If demand is inelastic a change in price will result in a change in total revenue in the same direction.(+P=+TR)
If absolute value of price elasticity is greater than 1 then why would an increase in price would lead to a decrease in revenue and a decrease in price will have the opposite effect?
Elasticity is defined as the percentage change in quantity for a given percentage change in price. If price goes up by 1% and quantity goes down by 2%, less revenue is generated, since (1.01*P)* (0.98*Q) < P*Q.
How does quantity supplied of a good with a large elasticity of supply react to price change?
It will be very sensitive to price change. A change in the price will change the quantity supplied by a factor greater than 1. ps: Price elasticity of supply= (% change in quantity supplied)/(% change in price)
Total expenditures are determined by what?
Dividing the change in demand for the product by its change in price. e=(change in demand)%/(change in price)%
What is the formula for price elasticity of demand?
Ed=% Change in quantity demanded/% Change in price=(Q2-Q1)/Q1/(P2-P1)/P1= P1 - Price before change P2 - Price after change Q1 - Quantity before change Q2 - Quantity after change Ed- Price elasticity of demand
When price changes there is an opposite change in?
Demand
What questions is the price elasticity of demand designed to answer?
Price elasticity of demand is used to determine how changes in price will effect total revenue. If demand is elastic(>1) a change in price will result in the opposite change in total revenue.(+P=-TR) When demand is unit elastic(=1) a change in price wont change total revenue. If demand is inelastic a change in price will result in a change in total revenue in the same direction.(+P=+TR)
Opposite of full price?
what is the opposite of full price ?i do not know discount is the answer welcomelove,icanansweranswers
What is the opposite of dowry?
bride price
If absolute value of price elasticity is greater than 1 then why would an increase in price would lead to a decrease in revenue and a decrease in price will have the opposite effect?
Elasticity is defined as the percentage change in quantity for a given percentage change in price. If price goes up by 1% and quantity goes down by 2%, less revenue is generated, since (1.01*P)* (0.98*Q) < P*Q.
What change is the opposite of an exothermic change?
endothermic change
What is a word that is opposite of the word price?
not priced
What is the opposite of the philosophy?
is the opposite or change of philosophy
How does quantity supplied of a good with a large elasticity of supply react to price change?
It will be very sensitive to price change. A change in the price will change the quantity supplied by a factor greater than 1. ps: Price elasticity of supply= (% change in quantity supplied)/(% change in price)
Is there an opposite of time?
Time is change, and the opposite would be a constant.
What physical change of is the opposite of boiling?
the opposite of boiling is freezing
Answer of What is up?
The opposite of down. The sky. The price of gold.
