What is the different between price effect and sales, Ask an Expert

Economics

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.

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9581635

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