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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 .