How does price change affect total revenue? Determine the unitary elasticity. When %change in quantity equals the %change in price (€=1). This is when P=$5.00 and Q=5.
When graphed, the upper half, above 5, is elastic (€=∞) and the lower half, below 5, is inelastic (€=0).
Looking at both graphs shows that as the price decreased from $10.00 - $5.00, the revenues increased.
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