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Hey guys! I am watching the lecture 3 elasticity. At13:29 the professor is talking about the relationship between Elasticity and Revenue; he says " If the elasticity is between 0 and minus 1, then raising prices will raise revenues. If the elasticity is greater than minus 1, then raising prices will lower revenues." Isnt this sentence itself contradictive? Shouldnt it be "lower than minus"? Thanks a lot :]
 one year ago
 one year ago
Hey guys! I am watching the lecture 3 elasticity. At13:29 the professor is talking about the relationship between Elasticity and Revenue; he says " If the elasticity is between 0 and minus 1, then raising prices will raise revenues. If the elasticity is greater than minus 1, then raising prices will lower revenues." Isnt this sentence itself contradictive? Shouldnt it be "lower than minus"? Thanks a lot :]
 one year ago
 one year ago

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wtekBest ResponseYou've already chosen the best response.0
Yes, it should be lower than minus 1 If ∞ < ϵ < −1 then raising prices will lower revenues.
 one year ago
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