Given the level of demand below, what is total revenue when the price is 18?
- between $26-$49
- more than 50
- $0 between
Types of Demand:
In economics, there are two different types of demand: elastic or inelastic. If an increase in price causes a decrease in quantity demanded or revenue, then demand is elastic. Most goods are elastic. If the increase in price has a small impact on the quantity demanded or revenue, it is said to be inelastic. One example of an inelastic good is gas.
Answer and Explanation:
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Learn more about this topic:
fromChapter 3 / Lesson 12
In this lesson, you will be introduced to the concept of an elastic demand and how to determine if the demand is elastic. Two methods will be presented along with examples.