Elastic and Inelastic Demand for Monopolies- Micro Topic 4.1 (Part 2 of 2)

The video tutorial by Mr. [INAUDIBLE] from ACDC covers key economic concepts in 60 seconds, focusing on the elastic and inelastic ranges of the demand curve. It explains how imperfect competition affects demand and marginal revenue, and introduces the total revenue test to differentiate between elastic and inelastic demand. The tutorial illustrates how price changes impact total revenue in both elastic and inelastic scenarios, and describes the relationship between marginal revenue and total revenue. Finally, it identifies the elastic and inelastic ranges on the demand curve, providing a clear understanding of these economic concepts.

What happens to marginal revenue in imperfect competition compared to demand?

• It remains constant.

• It decreases at the same rate as demand.

• It increases faster than demand.

• It decreases faster than demand.

In the context of elastic demand, what occurs when the price decreases?

• Total revenue decreases.

• Total revenue remains unchanged.

• Total revenue fluctuates randomly.

• Total revenue increases.

For inelastic demand, what is the effect on total revenue when the price increases?

• Total revenue decreases.

• Total revenue remains unchanged.

• Total revenue increases.

• Total revenue fluctuates randomly.

What indicates the elastic range of the demand curve?

• Price remains constant, total revenue fluctuates.

• Price goes down, total revenue goes up.

• Price goes down, total revenue goes down.

• Price goes up, total revenue goes up.

In the inelastic range of the demand curve, what happens when the price decreases?

• Total revenue increases.

• Total revenue remains unchanged.

• Total revenue decreases.

• Total revenue fluctuates randomly.