Asked by Rivaldo English on Jul 27, 2024
Verified
If a firm wants to increase revenue, it should decrease the selling price of its product if it is currently producing in the ________ portion of its demand curve.
A) elastic
B) inelastic
C) unit elastic
D) perfectly inelastic
Elastic Portion
A segment of the demand curve where a change in price leads to a more than proportional change in quantity demanded, indicating high price sensitivity.
- Digest the nexus between demand elasticity and total revenue accumulation.
- Determine the portion of the demand curve that indicates when a firm ought to adjust its pricing strategy to enhance revenue.
Verified Answer
JR
Jadia RobinsonJul 31, 2024
Final Answer :
A
Explanation :
In the elastic portion of the demand curve, a decrease in price leads to a proportionally larger increase in quantity demanded, which increases total revenue.
Learning Objectives
- Digest the nexus between demand elasticity and total revenue accumulation.
- Determine the portion of the demand curve that indicates when a firm ought to adjust its pricing strategy to enhance revenue.
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