When demand is elastic, a fall in price causes total revenue to rise because
A) the percentage increase in quantity demanded is less than the percentage fall in price.
B) the demand curve shifts.
C) when price falls, quantity sold increases so total revenue automatically rises.
D) the increase in quantity sold is large enough to offset the lower price.
D
You might also like to view...
Which of the following statements is true?
a. To maximize profits, a firm must maximize total revenue. b. In long-run equilibrium, a competitive firm produces at the point of minimum average total cost. c. In the short-run, a perfectly competitive firm produces where total cost is minimum. d. In the short-run, a perfectly competitive firm will close down whenever price is less than average total cost.
According to the theory of disappearing political discourse, politicians remain silent about issues because politicians:
A. don't have enough information. B. are unsure of their opinions. C. fear that voters do not fully understand the issues. D. fear that if they speak out they will be misunderstood.