If the elasticity of demand for bagels is equal to 1, moving along the demand curve for bagels, an increase in price will:
a. not affect the quantity purchased
b. decrease the quantity demanded and increase total revenue.
c. decrease the quantity demanded and decrease total revenue.
d. decrease the quantity demanded and leave total revenue unchanged.
d
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Which of the following statements is correct for the price elasticity of demand along a linear, downward-sloping demand curve?
A) The price elasticity of demand is constant because the slope is constant. B) At low prices, demand is elastic but at high prices demand is inelastic. C) At high prices, demand is elastic but at low prices demand is inelastic. D) The price elasticity of demand is not defined for a linear demand curve because the slope is constant. E) None of the above answers is correct.
One of the most common uses of GDP is to:
A. track changes in an economy over time. B. see which country has the fairest distribution of wealth. C. evaluate different standards of living across countries. D. measure the amount of money has been made in the economy.