Increase in total revenue Decrease in total revenue

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Presentation transcript:

Increase in total revenue Decrease in total revenue Elastic Demand Increase in total revenue Decrease in total revenue Price decrease Price increase

A B Demand curve 40 30 20 10 10 20 30 40 Elastic Demand (Ed > 1) Price per Ticket (dollars) B 20 Demand curve 10 10 20 30 40 Quantity of Tickets per Concert (thousands)

Inelastic Demand Decrease in total revenue Increase in total revenue Price increase Price decrease

C D Demand curve 40 30 20 10 10 20 30 40 Inelastic Demand (Ed < 1) Price per Ticket (dollars) D 20 Demand curve 10 10 20 30 40 Quantity of Tickets per Concert (thousands)

Unitary Elastic Demand No change in total revenue Price increase Price decrease

Unitary Elastic Demand (Ed = 1) 40 E 30 Price per Ticket (dollars) F 20 Demand curve 10 10 20 30 40 Quantity of Tickets per Concert (thousands)