Total Revenue
Elasticities (ความยืดหยุ่น)
Lesson Objectives ¤ See how companies can use PED in making decisions about price. ¤ How PED affects primary commodities markets ¤ How PED affects taxes
Elastic Demand ¤ Elastic Demand – when a change in price causes a relatively larger change in quantity
Inelastic Demand ¤ Inelastic Demand – when a change in price causes a relatively smaller change in quantity
Special Cases
What does PED mean for companies?
Total Revenue (รายได้) ¤ Total Revenue (TR) – the total amount of money received by firms when they sell a good or service. It is equal to the price of the good time the quantity of the good sold.
TR = P x Q
Elastic Demand and Total Revenue ¤ When demand is elastic (PED>1), an increase in price gives a decrease in total revenue, and a decrease in price gives and increase in total revenue.
Price Total Revenue
Price Total Revenue
Elastic Demand and Total Revenue
Inelastic Demand and Total Revenue ¤ When demand is inelastic (PED
Lesson Objectives ¤ See how companies can use PED in making decisions about price. ¤ How PED affects primary commodities markets ¤ How PED affects taxes
Elastic Demand ¤ Elastic Demand – when a change in price causes a relatively larger change in quantity
Inelastic Demand ¤ Inelastic Demand – when a change in price causes a relatively smaller change in quantity
Special Cases
What does PED mean for companies?
Total Revenue (รายได้) ¤ Total Revenue (TR) – the total amount of money received by firms when they sell a good or service. It is equal to the price of the good time the quantity of the good sold.
TR = P x Q
Elastic Demand and Total Revenue ¤ When demand is elastic (PED>1), an increase in price gives a decrease in total revenue, and a decrease in price gives and increase in total revenue.
Price Total Revenue
Price Total Revenue
Elastic Demand and Total Revenue
Inelastic Demand and Total Revenue ¤ When demand is inelastic (PED
