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Calculate supply and demand elasticities, identify the determinants of price elasticities of demand and supply, and demonstrate the relationship between elasticity and total revenue.

User Myrlene
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Answer:

1)Many factors determine the demand elasticity for a product, including price levels, the type of product or service, income levels, and the availability of any potential substitutes. High-priced products often are highly elastic because, if prices fall, consumers are likely to buy at a lower price

2)Elasticity means that as the price increases, the total units sold decrease and, as a result, so does total revenue.

User Deadkarma
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