Asked by
Gloria Rodriguez
on Dec 11, 2024
Verified
Refer to Figure 7-12. When price falls from $50 to $40, it can be inferred that demand between those two prices is
A) inelastic, since total revenue decreases from $8,000 to $5,000.
B) inelastic, since total revenue increases from $5,000 to $8,000.
C) elastic, since total revenue increases from $5,000 to $8,000.
D) unit elastic, since total revenue increases from $5,000 to $8,000.
Inelastic Demand
Refers to a situation where the quantity demanded of a good or service changes minimally in response to price changes.
Total Revenue
The total income received by a firm from selling its goods or services, calculated as the unit price multiplied by the quantity sold.
- Elucidate the correlation among alterations in price, expenditure by consumers, and overall income.
Verified Answer
CD
Learning Objectives
- Elucidate the correlation among alterations in price, expenditure by consumers, and overall income.