After reading Chapter 5 and attending class the student will be able to:
1. Explain why, when the price elasticity of demand for a product is inelastic, total revenue will increase when the price of the product increases.
2. Explain why, when the price elasticity of demand for a product is inelastic, total revenue will decrease when the price of the product decreases.
3. Explain why, when the price elasticity of demand for a product is elastic, total revenue will increase when the price of the product decreases.
4. Explain why, when the price elasticity of demand for a product is elastic, total revenue will decrease when the price of the product increases.
