Asked by
Sevinch Qurbonova
on Nov 25, 2024
Verified
In which of the following cases will total revenue increase?
A) Price falls and demand is inelastic.
B) Price falls and supply is elastic.
C) Price rises and demand is inelastic.
D) Price rises and demand is elastic.
Total Revenue
The total amount of money generated from sales of goods or services before any expenses are subtracted.
Elastic
Describes a situation in which the quantity demanded or supplied of a good or service significantly changes in response to a change in price.
Inelastic
Describes a situation where the demand or supply for a good or service is less responsive to changes in price.
- Analyze the relationship between elasticity and the totality of revenue earned.
- Grasp the consequences of elasticity adjustments on the aggregate revenue of businesses with changing prices.
Verified Answer
AN
Learning Objectives
- Analyze the relationship between elasticity and the totality of revenue earned.
- Grasp the consequences of elasticity adjustments on the aggregate revenue of businesses with changing prices.