Concepts
- Elasticity Stack
- Elasticity
- Δ P
- Δ TR
- Revenue Maximization (MR=0)
- Elasticity Ranges on Demand Curve
- Elastic Range (MR is Positive)
- Move Down Along Demand Curve
- Price Decreases
- Total Revenue Increases
- Inelastic Range (MR is Negative)
- Continue Moving Down Along Demand Curve
- Price Continues to Decrease
- Total Revenue Decreases
- Unit Elastic Demand (MR=0)
- Consumers are Exactly Responsive to a Change in Price
- Price Increases by 10%
- Quantity Demanded Decreases by Exactly 10%
- These Cancel Out, Thus No Change to Total Revenue
- Profit Maximization Always Occurs in the Elastic Range of the Demand Curve
Overview
Coming Soon
Materials
- Lecture Notes
- Practice Problems
Lecture
Elasticity and Total Revenue in Monopoly Video
Elasticity and Total Revenue in Monopoly Lecture Video
Quiz
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