The PED: Data Questions
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Question 1
This data response question requires you to run the simulation with the following input settings.
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Set the following input values;
- Value of PED is -1.4
- Percentage change in price is -10.00
Part a)
What happens to total revenue.
Part b)
Using economic theory explain the change in the total revenue.
Part c)
Explain why the outcome would be different if the PED was -0.5.
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