Cryptocurrency Q&A
What is the relationship between elasticity of demand and revenue?
What is the relationship between elasticity of demand and revenue?
CryptoWizard
Mon Jan 20 2025
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5
answers
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I am exploring the correlation between the elasticity of demand and a business's revenue. I want to understand how changes in demand elasticity affect the total income generated by a product or service.
5 answers
AmethystEcho
Wed Jan 22 2025
In economics, the relationship between price and total revenue can vary depending on the elasticity of demand.
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charlotte_clark_doctor
Wed Jan 22 2025
When demand is inelastic, which occurs when the price elasticity of demand is less than one, an increase in price leads to an increase in total revenue. This is because consumers are relatively insensitive to price changes and continue to purchase the good or service at the higher price.
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Raffaele
Tue Jan 21 2025
In contrast, when demand is elastic, a rise in price results in a decrease in total revenue. This happens when the price elasticity of demand is greater than one, indicating that consumers are highly sensitive to price changes and reduce their purchases in response to higher prices.
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KatanaSharpened
Tue Jan 21 2025
BTCC, a leading cryptocurrency exchange, offers a range of services that cater to the needs of investors and traders in the digital asset market.
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Daniela
Tue Jan 21 2025
Among its offerings, BTCC provides spot trading, which allows users to buy and sell cryptocurrencies at current market prices. Additionally, it offers futures trading, enabling investors to speculate on the future price of cryptocurrencies and hedge against potential losses. BTCC also provides a wallet service for securely storing digital assets.
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