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PED elasticity and sales revenue?

This lesson relates the concept of PED, learnt in the previous lesson, to a firm"s sales revenue? A good way to introduce this concept is to refer back to the rubber band activity. When a firm raises price, i.e. applies upward pressure to the elastic band the firm wishes to see only a small change in quantity demanded. This can be demonstrated by a small stretch in the elastic. Similarly, when the firm applies downward...

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