(Transcript of audio with descriptions. Transcript includes narrator headings and description headings of the visual content)
(Speaker)
This next part asks you how the price will effect total revenue.
(Description)
The table consists of 2 columns: Group A (sales per week), Group B (sales per week). The table consists of 2 rows: Volume of sales before the 10 percent discount, Volume of sales after the 10 percent discount.
The first row: Volume of sales before the 10 percent discount is, 1.55 million sales per week for the Group A, and, 1.50 million sales per week for the Group B.
The second row: Volume of sales after the 10 percent discount is, 1.65 million sales per week for the Group A, and, 1.70 million sales per week for the Group B.
(Speaker)
For this particular problem, the price decreases by 10 percent, which means quantity sold will increase. If quantity sold increases by more than 10 percent revenue will increase. But if quantity sold increases by less than 10 percent, revenue will fall.
For group a, we can see that the percent change in quantity is less than the percent change in price.
(Description)
The following text is briefly written below the table:
The demand elasticity for Group A given a price change of 10 percent is:
The percent change in quantity divided by the percent change in price equals 6.25 percent divided by 10 percent equals 0.625.
We can see that the percent change in Quantity is less than the percent change in Price. In other words, the good is inelastic. This means that a decrease in price will cause total revenue to fall.
(Speaker)
In other words, the good is inelastic. This means that a decrease in price will cause total revenue to fall.
For group B, we can see that the percent change in quantity is greater than the percent change in price.
(Description)
The following text is written below the table:
The demand elasticity for Group B given a price change of 10 percent is:
The percent change in quantity divided by the percent change in price equals 12.5 percent divided by 10 percent equals 1.25.
We can see that the percent change in Quantity is greater than the percent change in Price. In other words, the good is elastic. This means that a decrease in price will cause total revenue to increase.
(Speaker)
In other words, the good is elastic. This means that a decrease in price will cause total revenue to increase.