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谢谢各位!
根据大家的建议
我有翻了翻教材(靠,英文的)
搞了个答案
大家看看行不?
Question: If demand is elastic, how will an increase in price change total revenue? Explain and give an example.
My Answer: If demand is elastic, namely price elasticity of demand is greater than 1, when the price rises, the total revenue will decrease. For example, LV handbag, when its price rises, the quantities of its buyers will decrease. Because LV handbag is a luxury, so its demand elasticity is great than 1, from that, we know the decrease rate of buyers is greater than the increase rate of price. And the total revenue is price to multiply quantity. Now we can draw a conclusion that if demand is elastic, when the price rises, the total revenue will decrease. |
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