Thursday 7 April 2011

Elasticity and Revenue


My graph on the quantity, price, and total revenue of Joe Fresh Style yoga pants shows us that at the top of the demand curve, the demand for yoga pants is extremely elastic and on the bottom half the total revenue rises.  As the price drops, both the elasticity and total revenue fall.  The largest amount of total revenue($150) is reached when the quantity is 5 yoga pants and the price is $30 per pant.

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