Question

Which of the following statement(s) is (are) TRUE about the “Total Revenue Test”: A. If price...

Which of the following statement(s) is (are) TRUE about the “Total Revenue Test”:

  • A. If price and total revenue change in the opposite directions, demand is inelastic.
  • B. If a price change leaves total revenue unchanged, demand is elastic.
  • C. If price and total revenue change in the same direction, demand is inelastic.
  • D. All the above statements are true.
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Homework Answers

Answer #1

ANSWER :: (C) If price and total revenue change in the same direction, demand is inelastic.

=> Explanation ::

When Demand Is Inelastic It Means change In The Price Does not Effect Much On The Demand for That Goods and Services. So Because Of That whem demand Is Inelastic The Price and Total Revenue Change In The Same Direction They Both Increase Or decreasw Together. Also When Demand Is Elastic So Price And Total Revenue Change In The Opppsite Direction.

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