ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Price x Quantity Supplied
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Revenue-cost
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Price x Quantity sold
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Base x height
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Detailed explanation-1: -Total revenue is the price of an item multiplied by the number of units sold: TR = P x Qd.
Detailed explanation-2: -Producer surplus = Market price – Producer’s Minimum Acceptable Price. Alternatively, it is also calculated as follows: Producer surplus = Total Revenue – Production Cost.
Detailed explanation-3: -It is the total income of a business and is calculated by multiplying the quantity of goods sold by the price of the goods. For example, if Company A produces 100 widgets and sells them for $50 each, the total revenue would be 100 * $50 = $5, 000.
Detailed explanation-4: -The formula to calculate total revenue is: TR = Q x P … where TR – Total Revenue, Q – Quantity of sale (units sold), and P – Price per unit of output.
Detailed explanation-5: -Total revenue test formula To calculate total revenue (TR), multiply the price per unit (P) and quantity of the product sold (Q). You can use the total revenue test to estimate a product’s price elasticity of demand.