ECON 1 Lecture Notes - Lecture 9: Toothpaste, Unit

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Sult in a decrease in the quantity purchases. Simply inelastic or relatively inelastic- consumer products ( toothpaste or other consumer products) pay much less attention to price changes. % change is now /. 50 or 22 % and change in quantity is 10/15 or 67 %. Page 20: elastic demand: a specific percentage change in price results in a larger percentage change in quantity demanded. 02: unit elasticity a % change in price an the resulting % change in quantity demanded are the same. A 2% drop in the price results i n2 % increase in demand. 02: the total revenue test (tr) the total amount the seller receives from the sale of a product in a particular time period. It is calculated by multiplying the price times the. Quantity demanded: tr= price (p) x quantity (q, elastic demand if demand is elastic a decrease in price will increase total revenue.

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