mhi University 12 Total revenae will decrease if price: (a) rises and demand is
ID: 1127847 • Letter: M
Question
mhi University 12 Total revenae will decrease if price: (a) rises and demand is elastic (b) rises and demand is of unitary elasticity. (c) falls and demand is elastic (d) falls and demand is of unitary elasticity (e) rises and demand is inelastic wisehnel she dlong descries s chanasterisic of s good or senvice sing demnd hat is price inelastic? (a) the elasticity coefficient is greater than (b) total revenue is unchanged if price decreaes (c) total revenue decreases if price increases (d) the demand curve is upward sloping (e) none of the ahove -14. The formula for the price elasticity coefficient isthe (a) unit change in price times the unit change in quantity demanded (b) absolute change in price divided by the absolute change in quantity demanded (c) percentage change in price divided by the pencentage change in quantity d) percentage change in quantity demanded divided by the peroentage change in price (e) none of the above lfdetmand fora product is ofunitary clasticity(Ekiity-nth-increasing de price ofthe product would 15. (a) leave total revenue unchanged (b) increase total revenue (c) decrease total revenue (d) increase demand (e) decrease demand 16. The campas bookstore has reduced prices on pens and pencils in order to increase total revenue from sales of these items. Therefore, the manager of the campus bookstore is forecasting that the demand for pens and pencils at the bookstore is (a) inelastic (b) of unitary elasticity (c) perfectly elastic (d) elastic (e) none of the aboveExplanation / Answer
Answer 12:- Correct option is:- A:- price rises and demand is elastic
Reason:- If the demand is elastic then any increase in price will result in decline of demand and thus the total revenue will fall.
Answer 13:- The correct option is:- None of the above
Reason:- For a price inelastic demand, the change in revenue will be similar to the change in price. i.e. if the price increases, revenue will increase and vice versa.
Answer 14:- The correct option i:- percentage change in quantity demanded divided by percentage change in price.
Reason:- Formula for price elasticity = percentage change in quantity demanded / percentage change in price.
Answer 15:- The correct option is:-Leave total revenue unchanged
Reason:- If the price in increased or decreased of a product having unitary elasticity of demand then there will be no change in the total revenue.
Answer 16:- The correct Answer is:- Elastic
Reason:- If the demand is elastic in nature then an decrease in price will result in an increase of total revenue.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.