Ask Question
BusinessBusiness
12 May, 17:51

Do higher prices lead to increased revenues for a company? a. alwaysb. sometimesc. neverd. only when demand is elastic

+2
Answers (1)
  1. 12 May, 19:05
    0
    sometimes

    Explanation:

    Rising prices will lead to an increase in a firm's revenue if it does not cause a decrease in the quantity demanded. The way to measure the impact of price increases on the quantity demanded is by calculating elasticity. If demand is elastic, small variations in price are sufficient to have a considerable impact on demand. When demand is inelastic, the increase in price does not significantly impact demand, so demand will be inelastic. In this case, the price increase increases the firm's revenue.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Do higher prices lead to increased revenues for a company? a. alwaysb. sometimesc. neverd. only when demand is 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
What conditions must exist for separate contracts to be viable?
Answers (1)
The Adept Co. is analyzing a proposed project. The company expects to sell 3,300 units, give or take 4 percent. The expected variable cost per unit is $11 and the expected fixed costs are $12,500.
Answers (1)
Role of bank of Ghana
Answers (2)
One who, in good faith and without knowledge of defect, pays valuable consideration for a note before it is due is referred to as:a receiver in trust. an endorser in blank. a holder in due course. an assignor.
Answers (1)
Fairchild Garden Supply expects $700 million of sales this year, and it forecasts a 15% increase for next year. The CFO uses this equation to forecast inventory requirements at different levels of sales: Inventories = $30.2 + 0.25 (Sales).
Answers (1)
New Questions in Business
How will the general ledger accounts in the trial balance most likely differ if the company were a retail store rather than a wholesale company? how will they differ for a hospital or a government unit?
Answers (1)
Camilo's property, with an adjusted basis of $155,000, is condemned by the state. Camilo receives property with a fair market value of $180,000 as compensation for the property taken. a. What is Camilo's realized and recognized gain? b.
Answers (1)
A decrease in resource prices will increase the incentive of users to purchase the resource. suppliers to provide more of the resource. firms to find and develop substitutes for the resource.
Answers (1)
Garden Company purchased merchandise on account from Parker Company for $88,000 with terms 1/15, net 45. Garden Company returned $12,000 of the merchandise and received full credit from Parker Company.
Answers (1)
Money is a productive asset. Its opportunity cost is: A) The time value of money. B) Valuation. C) Inflation. D) Replacement cost. E) Depreciation.
Answers (1)
Home » Business » Do higher prices lead to increased revenues for a company? a. alwaysb. sometimesc. neverd. only when demand is elastic
Sign Up Forgot Password?