Answer to Question #205883 in Microeconomics for Thelma

Question #205883

When the price of commodity B rises by 10%, the total revenue received by firms that sell commodity B rises by 5%. The demand for commodity B is therefore...


1
Expert's answer
2021-06-16T09:22:21-0400

Given:

Price of the commodity B rises by 10%

Total revenue received by firms that sell commodity B rises by 5%

Demand =?

When the price of commodity B rises by 10%, the total revenue received by firms that sell commodity B rises by 5%. The demand for commodity B is, therefore... inelastic.

This is the scenario of the inelastic because a rise in price causes a rise in total revenue, resulting in the demand said to be inelastic as the rise in price does not have a large impact on the quantity demanded.


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS