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Unformatted text preview: Theater, opera 0.18 Using Price Elasticity of Demand Elasticity and Total Revenue 3 Elasticity and Total Revenue E d > 1 E d < 1 E d = 1 P TR TR no change P TR TR no change Other Elasticities Demand elasticities Cross-price Income Price elasticity of supply Summary Price elasticity measures how much the quantity (demanded or supplied) responds to changes in price. This can be generalized to measure the response of one variable to a change in another. Understanding elasticities allows us to analyze supply and demand with greater precision....
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