Economics 9708 · AS & A Level · Price elasticity of demand

Price elasticity of demand — practice question

A manufacturer sets a higher price for his product in an effort to boost total revenue. The table gives the outcome of this policy. price ($) 4 5 6 ; total revenue (000’s $) 400 500 600 Calculate the price elasticity of demand for the product.

  • Aperfectly elastic
  • Bperfectly inelastic
  • Crelatively elastic
  • Drelatively inelastic

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