Price Elasticity + Revenue

Question 1

Perfectly price Inelastic Demand

Answer 1

It doesn’t matter what the price is the demand stays the same so price is irrelevant

Question 2

Perfectly price Elastic Demand

Answer 2

As soon as the price goes above a certain point there won’t be enough demand

Question 3

Relatively price Inelastic Demand

Answer 3

Increase in price= increase in revenue

Question 4

Relatively price Elastic Demand

Answer 4

Increase in price= Decrease in Revenue