Asked by ricardo Velazquez on Jun 19, 2024
Verified
When the percentage change in price is greater than the resulting percentage change in quantity demanded:
A) a decrease in price will increase total revenue.
B) demand may be either elastic or inelastic.
C) an increase in price will increase total revenue.
D) demand is elastic.
Percentage Change
A mathematical calculation that describes the degree of change over time, representing the difference as a percentage of the original figure.
- Grasp how changes in price influence total revenue depending on the elasticity of demand.
Verified Answer
IB
Iliana BorreroJun 23, 2024
Final Answer :
C
Explanation :
When the percentage change in price is greater than the resulting percentage change in quantity demanded, it indicates that demand is inelastic. In such cases, an increase in price will lead to an increase in total revenue because the decrease in quantity demanded is not enough to offset the increase in price.
Learning Objectives
- Grasp how changes in price influence total revenue depending on the elasticity of demand.