Which of the following is FALSE regarding inelastic demand?
A) Price elasticity of demand is less than 1 (Ep < 1).
B) If a firm raises price, total revenues will go up.
C) Price elasticity of demand is greater than 1 (Ep > 1).
D) If a firm lowers price, total revenues will fall.
Answer: C
Economics
You might also like to view...
Which of the following is an example of a fixed input?
a. The acreage of a farmer's land. b. Machinery. c. The size of a firm's plant. d. All of these.
Economics
Rent control may lead to lower rents for those who find housing, but the quality of the housing may also be lower
a. True b. False Indicate whether the statement is true or false
Economics