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sm asked in Social ScienceEconomics · 10 years ago

if price elasticity of demand is -1.62 what happens to revenue if price rises?

rises, falls, falls by 162%, or rises by 1.62% ??

2 Answers

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  • 10 years ago
    Favorite Answer

    Falls providing the commodity is not cigarettes or other essential necessity

  • Anonymous
    10 years ago

    It will reduce total revenue,because the demand is elastic.The price increase will be less than the quantity decreases.It cannot be said how many % it will decline,because you have not given us the exact percentage of price rise.

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