Answers.com > Wiki Answers > Categories > Science > Social Sciences > Economics > How does a change in price on a linear demand curve affect total revenue?

How does a change in price on a linear demand curve affect total revenue?

In: Economics [Edit categories]

Answer:

on the linear demand curve, demand is elastic at price above the point of unitary elasticity so a price increase will decrease the total revenue.

First answer by ID1523790533. Last edit by ID1523790533. Question popularity: 2 [recommend question].

[report abuse]

Can you answer these Economics questions?

	What is the Difference between national development and national income?	Answer it!
	How do loyal customers respond to increases in prices?	Answer it!
	When were the last changes in design to all us banknotes?	Answer it!
	What is the definition of goods and services?	Answer it!
	Why does tariff is better than import quotas?	Answer it!

How do the changes of demand affect the price?
Higher demand, the higher the price goes. Remove the demand for something and then the price drops.
What determines how a change in prices will affect total revenue for a company?
values of elasticity
Linear demand curve diagram?
A Linear Demand Curve Diagram is a diagram that shows how an object or person is shown from youngest to oldest or tallest to shortest
How does price affect demand?
If the price goes up more potential customers will decide that the item isn't worth the price and will either do without or find a cheaper substitute.
How does price affect demand and supply?
Price does not often affect demand and supply. This is a cause and affect relationship. The affected is usually the price. Demand and supply are the cause. As demand for a certain item goes up, the...