Answer to Question #334701 in Microeconomics for Joy

Question

1. True or false

If the price elasticity is less than 1, a fall in price lowers the total revenue of the supplier's in question

2. True or false

If an increase in the price of sugar leaves the total expenditure on the sugar unchanged, then the price elasticity of the demand of sugar is equal to 1

Answer 1

1. True.

2. False.