question archive Regarding price elasticity, which of the following is false? a
Regarding price elasticity, which of the following is false? a
Subject:EconomicsPrice:2.88 Bought3
Regarding price elasticity, which of the following is false?
- a. In case of inelastic demand, an increase in price increases quantity sold.
- b. In case of inelastic demand, the lower the price, the lower is the revenue
- c. In case of unitary demand, consumer expenditure is unchanged if the price increases
- d. In case of linear demand function, the lower half of the demand curve is inelastic.
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Option a. In the case of inelastic demand, an increase in price increases quantity sold is correct
This option is correct because, in the case of inelastic demand, the price is charged higher than less quantity is sold. It means total revenue rises when the price rises and it falls with the decrease in price such that the demand is inelastic or less than one.
