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?
6. Explain the relationship between the elasticity and total
revenue. (Remember Total Revenue = Price x Quantity Sold)
11. After economic class one day, your friend suggests that
taxing tobacco would be a good way to raise revenue. In what sense
is taxing tobacco a "good" way to raise revenue? In what sense is
it not a "good" way to raise revenue?
explain the relationship between the proce elasticity of demand and
total revenue. what are the impacts of various forms of
elasticities (elastic, inelastic, unit elastic, etc.) on business
decisions and atrategies to maximaize profit? explain your
reaponses using empirical examples, formulas and graphs.
1. What is the relationship between price elasticity of demand
and total revenue?
2.You are the manager of a theater. At present the theater
charges the same admission price of $8 to all customers, regardless
of age. You propose a two-tier pricing scheme: $5 for children
under the age of 12 and $10 for adults. You tell your supervisor
that your proposal is likely to increase revenue. What must be true
about the price elasticity of demand if your proposal...
Define
Elasticity
Price Elasticity of Demand
Total Revenue
What is the difference between Inelastic and Elastic?
What determines whether the demand curve is Inelastic or
Elastic?
Explain the relationship between elasticity, total revenue, and
marginal revenue. If you have a new product in the market, will you
set the product price in the elastic or inelastic area? Why?
ECONOMICS FOR MANAGERS-GROUP ASSIGNMENT II
The relationship between marginal revenue and price elasticity of
demand is given asMR = P(1+1/ed), where MR is marginal revenue, P
is price of the commodity and Ed is the
coefficient of price elasticity of demand. As a manager of a
business firm in Accra, explain with
appropriate illustrati ons how the above relationship will guide
you in making pricing and output
decisions of your firm.