Questions and Answers
What does the law of demand state?
There is an indirect relationship between price and quantity
Inelastic demand occurs when products:
Have very few substitutes
What happens to total revenue when demand is inelastic and the price increases?
Total revenue increases
What does an elasticity coefficient greater than one (>1) indicate?
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Why do gas stations typically not have sales according to the text?
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How is the concept of elasticity related to the size of the box mentioned in the text?
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