Asked by
Abhishek Patil
on Oct 12, 2024
Verified
If the elasticity of demand for tongue depressors is 0.5,
A) a 10% rise in the price of tongue depressors will lower quantity demanded by 50%.
B) an increase in the price of tongue depressors will lower total revenue for sellers.
C) a 10% increase in the price of tongue depressors will not change its total revenue.
D) a 10% fall in the price of tongue depressors will raise quantity demanded by 5%.
Elasticity of Demand
An assessment of the extent to which the demand for a product or service varies following a price alteration.
Tongue Depressors
Tool used in medical practice to hold down the tongue to examine the mouth and throat.
Total Revenue
The total income received by a firm from selling its goods or services before any costs or expenses are deducted.
- Master the theory behind demand elasticity and the range of factors that affect it.
- Comprehend the influence of price alterations on aggregate revenue, taking elasticity into account.
Verified Answer
RS
Learning Objectives
- Master the theory behind demand elasticity and the range of factors that affect it.
- Comprehend the influence of price alterations on aggregate revenue, taking elasticity into account.