state how the following changes in price affect the total revenue?
29.October, 2009
this is, would total revenue increase, decline, or remain unchanged
a) price falls and demand is inelastic
b) price rises and demand is elastic
c) price rises and supply is elastic
d) price rises and supply is inelastic
e) price rises and demand is inelastic
f) price falls and demand is elastic
g) price falls and demand is of unit elasticity
Total revenue would increase in (c), (d), (e), and (f); decrease in (a) and (b); and remain the same in (g).
29.October, 2009 um 10:53 pm
Total revenue would increase in (c), (d), (e), and (f); decrease in (a) and (b); and remain the same in (g).
References :
http://highered.mcgraw-hill.com/sites/0072819359/student_view0/chapter20/answers_to_key_questions.html