Lesson 33 Flashcards
1
Q
Revenue
A
the amount a firm makes from sales
2
Q
What makes a good inelastic? (L.A.N.S)
A
Lacks substitutes
Addictive e.g. cigarettes
Necessary e.g. toothpaste
Small percent of consumer incomes e.g. food and cigarettes
3
Q
Draw a graph showing that inelastic goods increase in revenue as their prices increase
A
4
Q
Draw a graph showing that elastic goods increase in revenue as their prices decrease
A
