上海财经大学经济学原理绪论.pptVIP

* * Again, the slide appears cluttered in “Normal” view (edit mode), but everything is fine when displayed in “Slide Show” mode (presentation mode). Point out to students that the area representing lost revenue due to lower Q is smaller than the area representing increased revenue due to higher P. Hence, the net effect is an increase in revenue. The knife-edge case, not shown here but perhaps worth mentioning in class, is unit-elastic demand. In that case, an increase in price leaves revenue unchanged: the increase in revenue from higher P exactly offsets the lost revenue due to lower Q