Multiple Choice
If the price of a product with inelastic demand is increased, the _____ in revenue from selling fewer units.
A) gain in revenue from the higher price is greater than the loss
B) gain in revenue from the higher price is greater than the gain
C) loss in revenue from the higher price is smaller than the loss
D) gain in revenue from the higher price is smaller than the loss
Correct Answer:
Verified
Correct Answer:
Verified
Q20: In the short run, plants may<br>A) change
Q21: The larger the proportion of income spent
Q22: Which of these is likely to have
Q23: The price elasticity of supply measures how
Q24: Describe why the slope of a demand
Q26: If the price of a product falls
Q27: Moving down a linear demand curve, price
Q28: All of these are basic determinants of
Q29: A sales tax applied to a specific
Q30: State sales taxes are considered to be