ExamCompetition Your Success, Our Mission
Login Register
Question discussion

If the price elasticity of demand for a good is greater than 1 (demand is elastic), a fall in its price will cause the total revenue to

1356Medium DSSSB TGT Computer Science 0 replies 1 views
0

If the price elasticity of demand for a good is greater than 1 (demand is elastic), a fall in its price will cause the total revenue to

  • Aremain unchanged
  • Bdecrease
  • Cincrease
  • Dbecome zero
Correct answer: C

Explanation

When demand is elastic, the percentage rise in quantity demanded exceeds the percentage fall in price, so total revenue increases.
Join the discussion Report an error

Discussion 0

Nobody has replied yet. Start the discussion!