The table gives the demand schedule for peanuts.
When the price of peanuts falls from $0.60 to $0.20 a packet, what is the change in total revenue?
Over the price range of $0.20 and $0.60, the demand for peanuts is?
|Price (dollars per packet)||Quantity demanded (packets per day)|
Price Elasticity of Demand:
Demand is said to be elastic if quantity demanded changes by more than one percent, when price changes by one percent. Otherwise, demand is said to be inelastic. When demand is elastic, reducing price would increase total revenue. When demand is inelastic, increasing price would increase total revenue.
Answer and Explanation: 1
When price is 0.6, quantity demanded is 600, total revenue = 600 * 0.6 = 360. When price is 0.2, the quantity demanded is 800, total revenue = 0.2 *...
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fromChapter 3 / Lesson 54
Learn what price elasticity is. Discover how to find price elasticity of demand, study examples of price elasticity, and examine a price elasticity graph.