If the price elasticity of demand for a certain commodity is less than unity, then?...
ECONOMICS
JAMB 1993
If the price elasticity of demand for a certain commodity is less than unity, then?
- A. an increase in the price of the commodity will raise the total revenue of the producer
- B. an increase in price leaves the total revenue unchanged
- C. a decrease in price raises the total revenue of the supplier
- D. a decrease in price leaves the total revenue constant
Correct Answer: A. an increase in the price of the commodity will raise the total revenue of the producer
Post an Explanation Or Report an Error
If you see any wrong question or answer, please leave a comment below and we'll take a look. If you doubt why the selected answer is correct or need additional more details? Please drop a comment or Contact us directly. Your email address will not be published. Required fields are marked *