Topic Videos
Elastic Demand - Prices and Producer Revenue
- Level:
- AS, A-Level, IB
- Board:
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 2 Jun 2017
When the coefficient of price elasticity of demand is greater than one, then demand is said to be price elastic. One of the implications of this is that cutting prices can lead to an increase in total revenue because consumers are highly responsive to a price reduction. This short revision video takes students through a simple numerical example and a diagram to show the effects.
You might also like
Price elasticity of demand (Revision Presentation)
Teaching PowerPoints
Elasticity of Demand & Supply Revision Quiz
Quizzes & Activities
Explaining Consumer Surplus
Study Notes
Price elasticity of supply (Revision Presentation)
Teaching PowerPoints
Determinants of Demand (Revision Presentation)
Teaching PowerPoints
Income & Cross Elasticity Revision Quiz
Quizzes & Activities
Shifts in Market Demand
Study Notes
Coca Cola enters the milk market
26th November 2014