Total Revenue Along a Linear Demand Curve

Elasticity changes along a linear demand curve!

Concept: Total Revenue Along a Linear Demand Curve

8m

Problem: What is the elasticity of demand when the price of the good changes from $3 to $5? 


5m

Problem: At what price is the elasticity of demand for the product equal to one? 

2m

Problem: At what price is revenue maximized? 

1m