Ask Question
BusinessBusiness
18 December, 21:03

Total revenue decreases as the price of a good increases, if the demand for the good is rev: 05_14_2018

Multiple Choice

- unitary elastic.

- inelastic.

- elastic.

- perfectly elastic.

+2
Answers (2)
  1. 18 December, 22:39
    0
    Answer: Option (C) is correct.

    Explanation:

    Elastic demand means that percentage change in price lead to greater change in the quantity demanded.

    So, if the price of a good decreases then the consumers demand for a good increases and hence increase in the total revenue. On the other hand, if the price of a good increases then as a result demand for that commodity decreases and hence decrease in the total revenue.
  2. 18 December, 23:31
    0
    What unit elasticity means, therefor, is that any increase in the price causes a decrease in demand that keeps revenue the same. In a normal market a price which maximizes revenue must have this property, by definition, because if a higher price produces more revenue, we obviously have not maximized it
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Total revenue decreases as the price of a good increases, if the demand for the good is rev: 05_14_2018 Multiple Choice - unitary elastic. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Which ebusiness tool increases the speed of business by allowing the transfer of documents with the same speed as teleohone?
Answers (1)
Sandpiper Inc. has a division that manufactures a component that sells for $ 160 and has a variable cost of $ 35. Another division of the company wants to purchase the component. Fixed cost per unit of the component is $ 25.
Answers (1)
Amalgamation can be expressed as A+B+C=A True Or False ?
Answers (2)
LO 7.2Which of the following is not an operating budget? sales budget production budget direct labor budget cash budget
Answers (2)
A corporation uses the indirect method for preparing the statement of cash flows. a fixed asset has been sold for $25,000 representing a gain of $4,500. the value in the operating activities section regarding this event would be
Answers (1)
New Questions in Business
One disadvantage of renting a home is, which directly affect what the renters can and can't do in and around the house. On the other hand, renting provides consumers the benefit of.
Answers (1)
Bates Company purchased equipment on January 1, 2006, at a total invoice cost of $600,000. The equipment has an estimated salvage value of $15,000 and an estimated useful life of 5 years.
Answers (1)
Potato crops in Idaho have been damaged by plant disease, causing a scarcity of potatoes in the market. What is the most likely effect of the scarcity? A. The price of potatoes will decrease. B. The demand for potatoes will increase. C.
Answers (1)
Technological advances have resulted in fewer opportunities for small businesses abroad. a. True b. False
Answers (1)
When a buyer, pursuant to a sale of goods contract, accepts nonconforming goods, the buyer's measure of damages is:?
Answers (1)
Home » Business » Total revenue decreases as the price of a good increases, if the demand for the good is rev: 05_14_2018 Multiple Choice - unitary elastic. - inelastic. - elastic. - perfectly elastic.
Sign Up Forgot Password?