Micro 2.10 Total Revenue Test and Elasticity Review: Econ Concepts in 60 Seconds

Ezra Clifford explains the total revenue test, also known as the total expenditures test, focusing on inelastic and elastic demand curves. He describes how price changes affect total revenue in both scenarios, using examples like milk and sales events. A memory trick is provided to help remember the concepts without needing to draw graphs.

Describe a scenario where total revenue increases when the price decreases.

Evaluate responses using AI:

OFF

How can one remember the relationship between price changes and total revenue for elastic and inelastic demand?

Evaluate responses using AI:

OFF