The questions involve you interpreting the model output within your answers.

In this case, the model output consists of;

• The price elasticity of demand
• The original and new total revenue

Your discussion should focus on using the simulation to support the theoretical expectations of your discussion. For instance, you could argue that theoretically you would expect that the total revenue of a firm to increase if the price increased for a good with an inelastic demand. You can test this expectation using the simulation.

Price elasticity of demand home page »»
Use the back button to return to the what happens when option »»