GB 540 MENTOR Career Path Begins/gb540mentor.com GB 540 MENTOR Career Path Begins/gb540mentor.com | Página 4

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This Tutorial contains 2 Papers for this Assignment
It is highly recommended that you review the Seminar presentation
located in the Seminar areabefore beginning the Assignment.
According to the law of demand, if price increases, quantity demanded
of a good or service willdecrease or vice versa. Price elasticity of
demand tells us how much quantity demanded willdecrease when price
increases or how much quantity demanded will increase if price
decreases.On the other hand, according to the law of supply, if the
price increases, quantity supplied of a goodor service will increase.
Similarly, if price decreases, quantity supplied will decrease. The
degree ofsensitivity (responsiveness) of production/supply to a change
in price is measured by the concept of
price elasticity of supply.Total revenue is calculated as the quantity of
a good or service sold multiplied by its market price.
Thus, it is a measure of how much money a company makes from
selling its product. The coreobjective of a firm is maximizing profit.
One of the ways to maximize profit is increasing total revenue.
The firm can increase its total revenue by selling more items or by
raising the price. Among others,this depends on the nature of the price
elasticity of demand. Moreover, the length of time is animportant
factor in determining price elasticity of demand and supply.
Course outcome(s) practiced and assessed in this Assignment:
GB540-1: Examine microeconomic tools for purposes of problem
solving, analysis, and decisionmaking.
Directions