If a firm increases its prices when the demand is inelastic, then the firm will see a. no change in revenues. b. a decrease in revenues. C. no effect on the sales of its product. d. an increase in revenues.
If a firm increases its prices when the demand is inelastic, then the firm will see a. no change in revenues. b. a decrease in revenues. C. no effect on the sales of its product. d. an increase in revenues.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter5: Elasticity
Section: Chapter Questions
Problem 34P: The equation for a demand curve is P=2/Q. What is the elasticity of demand as price falls from 5 to...
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![If a firm increases its prices when the demand is inelastic, then the firm will see
a. no change in revenues.
b. a decrease in revenues.
C. no effect on the sales of its product.
O d. an increase in revenues.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4ca78393-c3b8-4544-94d7-25b27849cae3%2F44390138-c5ba-40ee-a1de-a3c62c8d566a%2Fnbeluz1_processed.png&w=3840&q=75)
Transcribed Image Text:If a firm increases its prices when the demand is inelastic, then the firm will see
a. no change in revenues.
b. a decrease in revenues.
C. no effect on the sales of its product.
O d. an increase in revenues.
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