Links

The discussion here links back to your understanding of TOTAL REVENUE and ELASTICITY.

During the Workshop presentations, it will be shown how elasticity can change along a given demand line.

The computations here are for the ARC co-efficient, but there is also a POINT co-efficient elasticity as well, where p = price before the price change, and q = quantity before the price change, and both Δ p and Δ q represent the change in price and quantity respectively:

Case Study: Oysters and Net Revenue

Key Points

To explain the significance of elasticity and the impact of price changes on net total revenue (TR).

To reconsider the derivation of elasticity by focusing on the price ranges Δp on the demand relationship...