00:01
Hey guys, and welcome to another economics example where we're going to be talking about some more of the fundamentals of demand.
00:07
So in this example, we're going to be talking about how total revenue and elasticity of demand are related.
00:14
It's pretty simple, really.
00:17
So as your elasticity of demand decreases, in all likelihood, your total revenues are going to increase.
00:27
And then vice versa.
00:29
As your elasticity of demand increases, your total revenue is probably going to decrease.
00:36
So, by the way, your elasticity decreasing means your product is becoming more inelastic.
00:43
And then the elasticity of demand increasing is just it being more elastic.
00:48
So let's go ahead and kind of draw why that is on a couple of graphs here.
00:54
So we'll draw first.
00:55
We'll start with a more inelastic good.
00:59
So you have your demand.
01:00
Here.
01:01
It's pretty inelastic...