When demand is elastic, an increase in price will cause
a. an increase in total revenue.
b. a decrease in total revenue.
c. no change in total revenue but an increase in quantity demanded.
d. no change in total revenue but a decrease in quantity demanded.
b
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Why may potential savings in a developing economy be greater than they appear? How can poor people be encouraged to save through financial institutions?
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Profit maximization occurs at the quantity where marginal cost equals marginal revenue
a. True b. False
All inputs are increased by the same proportion and the output increases more than proportionately, this means that:
(a) Constant returns to scale are present. (b) Increasing returns to scale are present. (c) Decreasing Returns to Scale. (d) None of the above.
Central banks can use monetary policy to
What will be an ideal response?