GB 540 Unit 2 Assignment Price Elasticity of Demand and Total Revenue( 2 Papers)
GB 540 Unit 2 Assignment Price Elasticity of Demand and Total Revenue( 2 Papers)
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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 area
before beginning the Assignment.
According to the law of demand, if price increases, quantity demanded of a good or service will
decrease or vice versa. Price elasticity of demand tells us how much quantity demanded will
decrease 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 good
or service will increase. Similarly, if price decreases, quantity supplied will decrease. The degree of
sensitivity( 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.