What is the general relationship between elasticity of demand, change in price and total revenue?
【General guidance】The answer provided below has been developed in a clear step by step manner.Step1/2When the price of a good or service changes, the quantity demanded changes in the opposite direction. Total revenue will move in the direction of the variable that changes by a large percentage. If the variables move by the same percentage, the total revenue remains the same. If the quantity demanded changes by a larger percentage than the price (that is, if the quantity demanded is price elastic), the total revenue will change in the direction of the quantity change. If the price changes by a large percentage compared to the quantity demanded ... See the full answer