question archive Total revenue will decrease, as the price of a good falls, if the price elasticity of demand for the good is: a
Total revenue will decrease, as the price of a good falls, if the price elasticity of demand for the good is: a
Subject:EconomicsPrice:2.88 Bought3
Total revenue will decrease, as the price of a good falls, if the price elasticity of demand for the good is:
a. Elastic demand and the elasticity is greater than 1.
b. Inelastic demand and the elasticity is greater than 1.
c. Unit elastic demand.
d. Perfectly inelastic demand.
e. Inelastic demand and the elasticity is less than 1.
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Option e. Inelastic demand and the elasticity is less than 1 is correct
This option is correct because total revenue and price of a good increases with each other and decrease together. It means the demand increases or decreases by less amount than the increase or decrease in the price of a good. It shows that the demand is inelastic or less than one.
