00:01
Okay, so in this question, we have a percentage change in quantity, which is equal to minus 30% and a percentage changed in total revenue is equal to positive 15%.
00:19
Let's recall that total revenue formula is just price times quantity.
00:23
So if we have an initial total revenue zero price, zero quantity zero.
00:31
While we're interested in finding the new total revenue.
00:37
Yeah, and ultimately, in determining whether this demand curve would be you elastic or inelastic, well, we can write total revenue.
00:45
One equals price, one times quantity, one another way.
00:49
We can write it all in terms of the initial terms that were given.
00:53
So we have an initial price, which we're going to change by a certain percent.
01:01
And we have an initial quantity, which we're going to change by 30%.
01:08
And this is going to give us a new total revenue, which is just the original affected by positive 15%...