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Economics (MindTap Course List)

13th Edition
Roger A. Arnold
Publisher: Cengage Learning
ISBN: 9781337617383
BuyFind

Economics (MindTap Course List)

13th Edition
Roger A. Arnold
Publisher: Cengage Learning
ISBN: 9781337617383

Solutions

Chapter
Section
Chapter 19, Problem 1QP
Textbook Problem

Explain how a seller can determine whether the demand for his or her good is inelastic, elastic, or unit elastic between two prices.

Expert Solution
To determine

Identify the demand elasticity between prices.

Explanation of Solution

The demand elasticity of a commodity can be identified through the variations in the total revenue (TR) as per the changes in price. If the TR of a commodity increase between two prices, then the commodity has an inelastic demand. As per the changes in price, if the TR declines or remains as constant, then the demand will be elastic and unit elastic, respectively.

Economics Concept Introduction

Elasticity of demand: Elasticity of demand refers to the responsiveness or the change in quantity demanded due to the change in price.

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Chapter 19 Solutions

Economics (MindTap Course List)
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