If revenue doesn't change, elasticity = 1, if revenue falls (when price
falls) inelastic, and when revenue rise , elastic
Richard Bowett
----- Original Message -----
From: "Headmaster Runnymede College" <[log in to unmask]>
To: <[log in to unmask]>
Sent: Tuesday, September 24, 2002 9:38 AM
> 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?
> --
> ________________________________________
> 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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