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Tema [17]
2 years ago
9

The following graph shows the market for widgets in a local hardware store.

Social Studies
1 answer:
Natalija [7]2 years ago
6 0

From the information given, the price of widgets is price elastic. This is because a reduction in price translated to change in revenue.

<h3>What is the explanation for the above?</h3>

Note that

Price of widgets= $8

Recall that

Total revenue = P*Q; thus

= 8*12

= $96

Where price is $7;

Therefore,

Total revenue(TR) is derived as;
= 7 x 16

= $112

Hence, the fall in price led to a rise in TR. This means that the demand is price elastic.

Learn more about price elasticity at;
brainly.com/question/5078326
#SPJ1

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