What determines how a change in prices will affect total revenue for a company?
a) elasticity of demand
b) the company's pricing policy
c) values of elasticity
d) the consumers' income
Ans: a) elasticity of demand
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A decrease in quantity demanded is given by a(n)
a. downward shift of the demand curve b. upward shift of the demand curve c. downward movement to the right along the demand curve d. upward movement to the left along the demand curve e. downward shift of both demand and supply curves
Cheryl is a professor at a local university. She hired a student from the university to babysit for her children and paid the student a wage higher than the typical wage paid to babysitters in her area to ensure the babysitter's reliability and that attention is paid to her children. What is the name for this above-equilibrium wage?