Economics of Revenue and Price

  1. I'd like to know how increase in revenue in related to price.

    If I have high prices compared to my competitors, and my revenue keeps growing...

    what does that mean?

    Does it mean my demand keeps growing even though I have high prices?

    In this case, my firm is inelastic?
  2. jcsd
  3. Re: Revenue and Price

    I don't think so, the term is reserved for "demand" isn't?
  4. Re: Revenue and Price

    I am so confused!!
    I need to put this together:

    - Supply curve shifts to the left (supply is reduced)
    - It has high prices compared to substitutes
    - Higher revenues each year.

    What is does that tell me about demand? What`s happening to demand?
  5. Pyrrhus

    Pyrrhus 2,205
    Homework Helper

    Re: Revenue and Price

    What kind of research is this?

    Is this homework?

    There are several factors why demand is still accepting the price. Two of them are information, and spatial location of the stores. There is a concept known as "Spatial monopoly".
  6. Re: Revenue and Price

    It was for my assignment. I already did it though. Hoping I am going to get a good grade. :)
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