EC 200-B01

*** TEST ***

700-wd paper due MONDAY

Price elasticity of demand
Substitutes?
Necessity?
Time to adjust?

total revenue (TR) TR = PQ (price x quantity)

moderate slope = elastic demand curve = (P+, TR- or P-, TR+)
steep slope = inelastic demand curve = (P+, TR+ or P-, TR-)

price discrimination = different prices justified by demographics or other non-cost factors

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