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Unformatted text preview: product (TR = P x Q) P TR 15 12 9 135 6 120 3 75 D 5 10 15 20 25 Q 5 10 15 20 25 Q TR = P > Q = Inelastic TR = P < Q = Elastic If in increase in price wins out over a decrease in quantity, it follows that % Q d < % P ( E d,p < 1 and demand is inelastic) and TR will increase. If the decrease in quantity over the increase in Price, it follows that % Q d > % P ( E d,p > 1 and demand is elastic) and TF will decrease. TR is highest when demand is unit elastic P P Elastic TR TR TR = P x Q TR = P x Q Inelastic TR TR % Q d % Q d Unit elastic TR -TR - E d,p = E d,p = % P % P...
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