Questions and Answers
When is demand considered elastic?
When the percentage change in quantity demanded is greater than the percentage change in price
What does it mean when demand is inelastic?
The percentage change in quantity demanded is less than the percentage change in price
What is the relationship between marginal revenue and total revenue when marginal revenue is negative?
Total revenue decreases when quantity increases
When is total revenue maximized in relation to marginal revenue?
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What does the slope of the demand curve indicate when the price is higher?
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When is demand considered inelastic?
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What does the slope of the demand curve indicate when the price is higher?
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When is total revenue maximized in relation to marginal revenue?
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What is the relationship between marginal revenue and total revenue when marginal revenue is negative?
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What does it mean when demand is elastic?
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