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Author Question: Price elasticity of demand refers to the ratio of the: a. percentage change in price of a good in ... (Read 67 times)

Zulu123

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on: Jun 30, 2018
Price elasticity of demand refers to the ratio of the:
 a. percentage change in price of a good in response to a percentage change in quantity demanded.
  b. percentage change in price of a good to a percentage increase in income.
  c. percentage change in the quantity demanded of a good to a percentage change in its price.
  d. none of these.

Question 2

If demand is inelastic, an increase in the price of a good will cause total revenue to:
 a. fall.
  b. remain constant since the decrease in quantity sold is exactly offset by the price increase.
  c. rise.
  d. rise if it is a normal good and fall if it is an inferior good.


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Meganchabluk

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Reply #1 on: Jun 30, 2018
Answer to Question 1

c

Answer to Question 2

c


Zulu123

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Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

ryhom

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Reply 3 on: Yesterday
Excellent

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