Explain the total revenue test
What will be an ideal response?
The total revenue test estimates whether demand for the good is elastic, unit elastic or inelastic based on what happens to total revenue when the price of a good changes. If price and total revenue move in opposite directions, demand is elastic. If price and revenue move in the same direction, demand is inelastic. If a price change does not change total revenue, demand is unit elastic.
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Between 1960 and 2010, the labor force participation rate for women
A) increased until about 1996. B) decreased in most years. C) did not change. D) first rose sharply and then, after 1996, fell equally sharply. E) did not change until 1992, after which it generally increased.
One property of Kenneth Arrow's "perfect" voting system is that the ranking between any two outcomes A and B should not depend on whether some third outcome C is also available. Arrow called this property
a. transitivity. b. pairwise perfection. c. independence of irrelevant alternatives. d. irrelevance of social choices.