Asked by Viraj Mistry on Jul 30, 2024
Verified
Total revenue increases if price ________ and demand is ________.
A) falls; inelastic
B) falls; elastic
C) rises; elastic
D) rises; unit elastic
Total Revenue
The overall revenue a business earns from sales of goods or provision of services throughout a given timeframe.
Price Falls
Occurs when the market price of a good or service decreases over time.
- Analyze how changes in price impact the total revenue accumulated.
Verified Answer
ZK
Zybrea KnightAug 05, 2024
Final Answer :
B
Explanation :
Total revenue increases if price falls and demand is elastic because consumers are more responsive to price changes, leading to a proportionally larger increase in quantity demanded than the decrease in price, thus increasing total revenue.
Learning Objectives
- Analyze how changes in price impact the total revenue accumulated.