This preview shows page 1. Sign up to view the full content.
Unformatted text preview: lands on the yawning, it acts elastically. If inelastic, he fall straight through. Elasticity tells us what will happen to total revenue. Total Revenue= Price * Quantity (P*Q) If the demand curve is inelastic and there is an increase in price, then total revenue will increase. Memory trick If you have an In elastic demand curve And you have and In crease in price, Then you will have an I n crease in TR....
View Full Document
- Spring '08