Relationship between total revenue and price elasticity of demand, example with graph and explain how even...

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

Expert Solution

As the supply improves Demand < Supply which leads to decrease in price and increase in quantity.

But a point which is noteworthy is that agriculture products are mostly price inelastic.

In price inelastic decreasing in price and increasing in quantity that total revenue reduces.

All the best.

In case of any query feel free to leave your doubt in comment section.

Rahul Sunny answered 7 months ago

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