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If the price elasticity of demand for canned soup is estimated at minus1.62. what happens to sales revenue if the price of canned soup​ rises
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If the price elasticity of demand for canned soup is estimated at minus1.62. what happens to sales revenue if the price of canned soup​ rises

User Mwnsiri
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Answer:

If the price of canned soup rises, sales revenue shall drop.

Step-by-step explanation:

The elasticity of demand in this case is -1.62, thereby it is relatively elastic.

Out of the above, the percentage change in quantity demand is less compared to that of price thereby when the price of canned soup rises then the total revenue drops.

When the price of canned soup falls then the total revenue rises.

User Lidsinker
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