The price elasticity of demand for a good is 0.2 . A 10 percent rise in the price will _______ the total revenue from sales of the good
A. decrease
B. increase
C. decrease the quantity sold with no change in
D. not change
B The total revenue test on page 121 shows that a rise in the price increases the total revenue if demand is inelastic.
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A player has a dominant strategy when:
A) her chosen strategy gives her a lower payoff than the other player. B) her chosen strategy matches the best response of other players in the game. C) she has many best responses to any strategy of the other player in the game. D) she has only one best response to every possible strategy of the other player.
Which of the following is characteristic of a perfectly competitive market?
a. There is free entry into and exit from the market. b. Individual firms can exert a perceptible influence on the market price. c. The firms in the market produce differentiated products. d. All of these are true.