If TR is constant, PED = 1 by definition ( % fall in Price is exactly matched by % rise in quantity)
Piers Coutts
Economics & Business Studies Department
The King's School
Ely
Cambs
CB7 4DB
01353 653916
-----Original Message-----
From: Headmaster Runnymede College
[mailto:[log in to unmask]]
Sent: 24 September 2002 09:38
To: [log in to unmask]
Subject:
I have a disagreement over this one: A manufacturer progressively
reduces the price of his product in an attempt to increase total
revenue. The table shows the outcome of the policy:
Price Revenue
10 750
9 750
8 750
Elasticity?
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________________________________________
From the Headmaster
Runnymede College
Calle Salvia 30
28109 La Moraleja
Madrid
Spain
http://www.runnymede-college.com
phone: +34 91 650 8302
fax: +34 91 650 8236
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