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RoseWind [281]
4 years ago
15

Suppose the price elasticity of demand for your economics textbook is −1. If the publisher raises the price by 5 percent, then _

____
Social Studies
2 answers:
SSSSS [86.1K]4 years ago
8 0

Answer:

the total revenue remains the same

Explanation:

The price elasticity of demand for a commodity is defined as the ratio of the demand change (%) in the commodity to supply change in the commodity. Thus, we have:

Price elasticity of demand = percent change in demand/percent change in supply

Therefore, if the price elasticity of demand is less than 0 i.e. -1, and the commodity price increases by 5%, the total revenue made from the commodity will remain the same.

lina2011 [118]4 years ago
7 0

Answer:

Total revenue of text book will not change.

Explanation:

This is because the price elasticity curve is in elastic(it is negative)

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