Finally, i began to start schoolling...
Yesterday was my first lecture on Economics, it does ring a bell to me in the head as i have been through the course... During the lecture, I am able to understand what the lecturer, Mr Ting is trying to say but when it comes to the tutorial.... *ka boomz* Wahh... Interpretation of the question itself is zero!!! I had to read it like 2 to 3 times before i can comprehend what is the question trying to ask... Yeah... Thats for my first class -__-"
My lesson is on Demand and Supply plus elasticity...
Then in my head come upon this question:
Price elasticity refers to the price of X goods decreases, the demand will increase and thus Total Revenue will increase. Equation = (decrease)$ of X, (increase) Dx = (increase) TR
Price inelastic refers to the price of X goods increase, the demand will decrease but the Total Revenue will still increase. Equation = (increase)$ of X goods, (decrease) Dx = (increase)TR
My question is whether Coffee is price sensitive or not responsive?? Is tea a substitute to coffee or is tea a complement to coffee???
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