Answer to Question #220117 in Microeconomics for THOBI

Question #220117

Which one of the following statements is true with regards to price elasticity and total revenue.

Expert's answer

If demand is inelastic an increase in the price will increase total revenue while a decrease in price will decrease total revenue

Learn more about our help with Assignments: Microeconomics

Comments

No comments. Be the first!

Leave a comment

Related Questions

1. in a perfect competition, the cost function of each of 100 firms is given as . C = q^3\300 + 0.2q^2
2. If cost function is C=wL + rK. Specify quantities of capital and labour that minimise costs?
3. If the quantity demanded for Apple is given by : Qd= 300-2,55PA+7,62PB+0,75Y If PA=90cents,PB=50ce
4. If TC= 3+Q^2 and demand Is P=3-1÷2Q. Calculate total profit
5. Suppose widgets have a price elasticity of demand equal to -1,95 and a cross elasticity of demand eq
6. Mathematically prove that profit maximizing level of output is obtained where MR=MC
7. You are given the following schedule for the production of pens by a firm Labor Total Product 0 0