11 PED and Total Revenue

This video explains how price elasticity of demand affects a firm's total revenue. We explore two scenarios: when demand is price elastic and when it is price inelastic. Discover how a rightward shift in the supply curve impacts total revenue differently depending on the steepness of the demand curve. Learn whether a price reduction leads to an increase or decrease in total revenue based on the elasticity of demand. Understand the critical relationship between price changes, quantity demanded, and the resulting effect on total revenue for businesses. Subscribe to @AxiomTutoringCourses for more economics tutorials.