Fill in the blank! :)
If demand is elastic, total revenue falls when ___________.
***I think it's when there is an increase in price or when the price rises.

Is that right? Thank you!! :)

Question

Fill in the blank! :)
If demand is elastic, total revenue falls when ___________. 
***I think it's when there is an increase in price or when the price rises.

Is that right? Thank you!! :)

phi · Answer

sounds reasonable, but to be absolutely sure I would have to google this stuff.  Economics is a big mystery to me.

anonymous · Answer

ahh okay thanks!!

amistre64 · Answer

The degree to which a demand or supply curve reacts to a change in price is the curve's elasticity. http://www.investopedia.com/university/economics/economics4.asp

anonymous · Answer

wait so it is when price changes in general, that's elasticity? but when revenue falls, that means the price change went up ?

anonymous · Answer

@amistre64 ?

amistre64 · Answer

library is going on lunch break, so im not sure if ill be back today or not.

amistre64 · Answer

...ie, im out of time to delve into this to determine if your response is adequate

anonymous · Answer

ahh okay :P

haha thank you! :D