The figures above both set out some important but tedious rules. For each of the following cases, state whether the demand curve is relatively steep or flat and whether a fall in price will raise total revenue or lower it. In this case, note that we present the elasticity in terms of its absolute value.
Elasticity of demand = 0.7.
Elasticity of demand = 3.0.
Elasticity of demand = 20.0.
Elasticity of demand = 1.05.
Elasticity of demand = 0.95.
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