1. Ecomomics: Elasticity
In general, the demand for a good is said to be inelastic when the PED is less than one which is known as absolute value. ... The demand for a good is said to be elastic when its PED is greater than one, in absolute value. ... If demand is elastic and more than 10 percent of the station's customers stop going there, Exxon find total revenue dropping. ... However, if demand is inelastic and the station can maintain most of its customers at the higher price, its total revenue will rise. ...
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