Elasticity of demand and revenue

1.Differentiate movement along the demand curve from shift in demand curve. You can support your answer with diagram for more clarity.

2 Discuss the use of demand forecasting to managerial decision making.

3.Explain the relationship between elasticity of demand and revenue. You can support youranswer with diagram.

Use supply and demand curve shifts to illustrate the effect of the following events on the market for apples. Make clear the direction of the change in both price and quantity sold.

a. Scientists find that an apple a day does indeed keep the doctor away.

b. The price of oranges triples.

c. A drought shrinks the apple crop to one-third its normal size.

d. Thousands of college students abandon the academic life to become apple pickers.

e. Thousands of college students abandon the academic life to become apple growers.

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