Thursday, November 19, 2015

Clearing Up Inelastic Demand Curves and Price Changes

The video below makes two points about inelastic demand curves: the first is specific to inelastic curves and the second is more general to all demand curves.
  1. Please keep in mind the differences between NO quantity change and LITTLE quantity change when prices are increased or decreased!
  2. Our demand curves CAN show us revenue, but NOT profit...

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