Multiple Choice
Knowing the price elasticity of demand is important in business because:
A) it allows a manager to determine whether a price increase will cause total revenue to rise or fall.
B) it allows a manager to determine whether an increase in supply will cause total profit to rise or fall.
C) it allows a manager to determine how to maximize the firm's profits.
D) it allows a manager to determine whether a price increase will cause the demand to rise or fall.
Correct Answer:
Verified
Correct Answer:
Verified
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