What is the different between price effect and sales effect, Macroeconomics

Assignment Help:

What is the different between price effect and sales effect?

Both relate to Elasticity and Total Revenue:

a. A price effect: After a price raise, all unit sold sells at a higher price that tends to increase revenue.

b. A sales effect: After a price raise, fewer units are sold that tends to lower revenue.


Related Discussions:- What is the different between price effect and sales effect

Maximization, Prepare an essay regarding the concept of maximization and th...

Prepare an essay regarding the concept of maximization and the assumptions associated with the behavior of the economic man.

Inflation unemployment trade off under adaptive expectations, Explain how i...

Explain how inflation unemployment trade off is not feasible under adaptive expectations?

What is money and what is not money, What is money and what is not money ...

What is money and what is not money If you are trying to conclude if something is money, simply consider whether it would be accepted in most stores as payment. You then realiz

Market clearing values of wages, On the next page is a graph of a labor mar...

On the next page is a graph of a labor market in equilibrium, with market clearing values of wages and hours of employment being W 1 and E 1 respectively.  a.  The Federal gov

Opportunity costs associated, The opportunity costs associated with the use...

The opportunity costs associated with the use of resources owned by a firm are: a. externalities b. implicit costs c. explicit costs d. sunk costs

Geometric gradient series, Determine the present worth of a geometric gradi...

Determine the present worth of a geometric gradient series with a cash flow of $50,000 in year 1 and increases of 6% each year through year 8. The interest rate is 10% per year.

Exchange rate, what are the types of exchange rate

what are the types of exchange rate

Adf test, Table Summary of results from the ADF test ...

Table Summary of results from the ADF test Test Number Oil GDP Interest rate Inflation Unemployment Exc

Perfect competition, c) Explain why perfectly competitive markets lead to a...

c) Explain why perfectly competitive markets lead to an allocatively efficient allocation of resources in the long run

Supply-side economics market freedom, What is Supply-side Economics Market ...

What is Supply-side Economics Market Freedom? Markets must be allowed to work more freely and steps taken to improve this efficiency by:   freeing them from governm

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd