Question

) 10) Which of the following statements is not correct? A) If the relative change in price is greater than the relative change in the quantity demanded associated with it, demand is inelastic. B) Total revenue will not change if price varies within a range where the elasticity coefficient is unity C) In the range of prices in which demand is elastic, total revenue will diminish as price decreases D) Demand tends to be elastic at high prices and inelastic at low prices

Answer #1

Option C is incorrect.

Note that when the demand is elastic it implies that for a given change in the price the quantity demanded changes more than proportionately. Total revenue is the product of price and quantity. So when price is decreasing and therefore quantity demanded is increasing, we expect that the increase in the quantity demanded is more than the decrease in the price so that the total revenue will increase. Hence, when demand is elastic total revenue and price move in the opposite direction and not follow each other.

Which of the following is not a characteristic of a commodity
with inelastic demand?
a) Total revenue decreases if price rises.
b) The absolute value of the price elasticity coefficient is
less than one.
c) Buyers are relatively not so responsive to price changes.
d) The relative change in quantity demanded is less than the
relative change in price.

A price change causes the quantity demanded for a good to
increase by 20 percent and the total revenue of that good decreases
by 15 percent. What can you say about the price elasticity of
demand at this point.
It's elastic
It's inelastic
It's unitary elastic
It's perfectly elastic

1. What is the numerical value for the price elasticity of
demand if a price change causes no change in quantity
demanded?________ What is the numerical value for elasticity of
demand if a price change causes no change in total revenue?________
What is the elasticity of demand for a horizontal demand
curve?________ What is the elasticity of demand if a price increase
leads to an increase in total revenue? elastic /
inelastic. What is the numerical value for the elasticity...

1. When elasticity of demand is equal to one and the change in
the quantity demanded and the change in price are exactly
proportional. This type of elasticity is described as ________.
A. elastic
B. inelastic
C. unitary elastic
2. What happens to total revenue (TR) if the price rises on a
product with demand that is price elastic?
A. Total revenue will rise.
B. Total revenue will remain the same.
C. Total revenue will fall.

Total revenue equals the price multiplied by the quantity. The
relative change price and quantity is given by the concept of
________________.
Select the correct answer below:
profit margin
relative value
elasticity
economies of production
When demand is elastic and price increases, what happens to both
revenue and quantity?
(Select 2 answers.)
Select all that apply:
revenue decreases
revenue increases
quantity decreases
quantity increases
What is the relationship between two goods that are
complements?
Select the correct answer below:
The...

a. How much would the firm’s revenue change if it lowered price
from $12 to $10? Is demand elastic or inelastic in this range?
Revenue change: $ -3.66 -3.66 Incorrect Demand is elastic Correct
in this range b. How much would the firm’s revenue change if it
lowered price from $4 to $2? Is demand elastic or inelastic in this
range? Revenue change: $ 20 20 Incorrect Demand is inelastic
Correct in this range c. What price maximizes the firm’s...

QUESTION 21
If the percentage change in quantity demanded is greater than
the percentage change in price for good A, then the demand for good
A is
a.
inelastic.
b.
unit elastic.
c.
elastic.
d.
perfectly inelastic.
QUESTION 22
If the percentage change in quantity demanded is less than the
percentage change in price for good B, then the demand for good B
is
a.
inelastic.
b.
unit elastic.
c.
elastic.
d.
perfectly elastic.
QUESTION 23
If the percentage change...

A price change causes the quantity demanded of a good to
increase by 2 percent, while the total revenue of that good
decreased by 8 percent. Over this price range is the demand for
this good elastic, inelastic or unitary elastic? Could anyone
explain, please?

Which of the following is true of price elasticity of
demand?
a. The elasticity of demand is inversely proportional to the
number of competitors offering a particular product.
b. Price elasticity tends to be greater in countries with low
income levels.
c. Demand is said to be elastic is only defined by the
competitive conditions in a country.
d. The price elasticity of demand is only defined by the
competitive conditions in a country.
e. Demand is said to be...

If the percentage change in
price is 10 percent and the demand is elastic, how would the
quantity demanded percentage change?
If a decrease in price
increases total revenue, what can you determine about the
elasticity of demand for the good?

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