asked 203k views
4 votes
When ruko, a device used to stream movies at home, increases prices by 48% total revenue decreases by 61%?

asked
User FedG
by
8.9k points

1 Answer

3 votes

Answer: Demand is elastic

Step-by-step explanation:

Total revenue from the sale of a good is negatively related to the price when demand for the good is elastic and positively related to the price when demand for the good is inelastic.

So, as increase in price by 48% decreases total revenue by 61%, therefore the demand for Ruko, a device used to stream movies at home is elastic.

answered
User Wayne Kaskie
by
8.0k points
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