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Cataloged Resource Summary

 

Title

Effects of Elasticity on the Responsiveness of Revenue to Price Changes Along Linear Demand Functions

Author

Ted Black

Category

Consumer Economics

Subject

Microeconomics

Type

Interactive Tutorial

Description

The student is expected to understand the following aspects of the relationship between elasticity and revenue, given price changes on a linear demand schedule: revenue changes in response to price changes depend upon elasticity; elasticity changes along a linear demand function ; when elasticity is greater than one (elastic), price changes and revenue changes are inverse; when elasticity is less than one (inelastic), price changes and revenue changes are direct; the slope and intercept on a linear demand function affect elasticity at a given level of quantity demanded

URL

http://nova.umuc.edu/~black/el0.html
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