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March 29, 2022

discussion

APA (edition "APA 6"), Business and Management

After viewing the video clip, Bart Gets an Elephant, consider the relationship between price elasticity of demand and total revenue, and why Homer didn’t make the smartest business decision when raising the price of admission. For this weeks discussion question, you should pick two products: one that is relatively price inelastic and another that is relatively price elastic. You can determine a products relative price elasticity by considering the Determinants of the Price Elasticity of Demand listed in your textbook. You should begin by defining your product in terms of the determinants and then describe how increases in the price would affect total revenue. Would it make good business sense to be the one producing and selling these products? Why or why not?

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