Suppose the price elasticity coefficients of demand are 1.43, 0.67, 1.11, and 0.29 for products W, X, Y, and Z, respectively. A 1 percent decrease in price will increase total revenue in the cases of

A) W and Y.
B) Y and Z.
C) X and Z.
D) Z and W.

Question

Zybrea Knight · Accepted Answer

Final Answer : A, Explanation :  Products W and Y have price elasticity coefficients greater than 1 (1.43 and 1.11, respectively), indicating that they are elastic. Therefore, a 1 percent decrease in price for these products will lead to a more than proportional increase in quantity demanded, increasing total revenue.

Suppose the price elasticity coefficients of demand are 1.43, 0.67, 1.11, and 0.29 for products W, X, Y, and Z, respectively. A 1 percent decrease in price will increase total revenue in the cases of

A) W and Y.
B) Y and Z.
C) X and Z.
D) Z and W.

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Learning Objectives

Related questions

Suppose the price elasticity coefficients of demand are 1.43, 0.67, 1.11, and 0.29 for products W, X, Y, and Z, respectively. A 1 percent decrease in price will increase total revenue in the cases ofA) W and Y.B) Y and Z.C) X and Z.D) Z and W.

Definitions

Learning Objectives

Learning Objectives

Related questions

Suppose the price elasticity coefficients of demand are 1.43, 0.67, 1.11, and 0.29 for products W, X, Y, and Z, respectively. A 1 percent decrease in price will increase total revenue in the cases of

A) W and Y.
B) Y and Z.
C) X and Z.
D) Z and W.