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Explain about the elasticity and total revenue.
Elasticity and Total Revenue:
a. When demand for a good is elastic, a raise in price decreases total revenue. Then Sales effect > Price effect there.
b. When demand for a good is inelastic, a higher price raises total revenue. Then Price effect > Sales effect
c. When demand for a good is unit-elastic, an increase into price does not change whole revenue. Then Sales effect = Price effect.
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