Other things being equal, the lower the value of elasticity:
A. the more likely the profitability of a price increase.
B. the less likely the profitability of a price increase.
C. the greater the responsiveness in quantity demanded to a price change.
D. the lower the corresponding increase in firm revenue.
Answer: A. the more likely the profitability of a price increase.
You might also like to view...
What is the "most favored nation" principle of the WTO?
a. Trading partners may choose a favorite nation to trade with. b. Any nation can refuse to trade with another that is not its most favored nation. c. The WTO has the right to choose the nation that has performed best within the WTO guidelines as its most favored nation. d. Every nation must grant the same rights and treatment to other nations in the WTO as its "most favored nation."
The reduction in transactions costs per dollar of investment as the size of transactions increases is
A) discounting. B) economies of scale. C) economies of trade. D) diversification.