After reading Chapter 5 and attending class the student will be able to:

After reading Chapter 5 and attending class the student will be able to:

1.     Explain why, when the price elasticity of demand for a product is inelastic, total revenue will increase when the price of the product increases.

2.     Explain why, when the price elasticity of demand for a product is inelastic, total revenue will decrease when the price of the product decreases.

3.     Explain why, when the price elasticity of demand for a product is elastic, total revenue will increase when the price of the product decreases.

4.     Explain why, when the price elasticity of demand for a product is elastic, total revenue will decrease when the price of the product increases.