ling Learning Map lan learning abel the following scenarios as examples of elast

Question

ling Learning Map lan learning abel the following scenarios as examples of elastic, inelastic, or unit elastic demand. When Ruko, a device used to stream movies at home, increases prices by 57% total revenue decreases by 67%. Elastic Inelastic When Cinema Supreme decreases ticket prices by 26%, total revenue does not change. nit elastic When BlueBox, a DVD,rental kiosk, increases its prices by 48%, total revenue increases by 31%. O Previous Give Up & View Solution e> Check Answer e 1 Exit. Next Hint

Explanation / Answer

1) Elastic
Demand has fallen after an increase in price so it must be elastic.

2) Inelastic
There is much change in demand even after decrease price so it is inelastic demand.
Inelastic demand indicates no or slight change in the quantity demanded when there was a price change.

3) Inelastic
Even after price change demand has not fallen which means product or service is inelastic in nature and stellar demand is raising revenue.

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