Economics 202 Module 3.9

Suppose a decrease in the supply of wheat results in an increase in revenue. This indicates that

the resulting increase in price is proportionately greater than decrease in quantity sold

Suppose when Nablom's Bakery raised the price of its breads by 10 percent, the quantity demanded fell by 15 percent. What was the effect on sales revenue?

Sales revenue decreased

When Audrina raised the price of her homemade cookies, her total revenue increased. This suggests that the demand for Audrina's cookies is elastic

False

which of the following statements is true?

If the price of a good is raised and total revenue increases, demand is inelastic.

Which of the following statements is true?

When a firm lowers its price its total revenue may either increase or decrease

Total revenue equals

price per unit times quantity sold

If a firm raised its price and discovered that its total revenue fell, then the demand for its product is

relatively elastic

Suppose a decrease in the supply of bottled water results in a decrease in revenue. This indicates that

the demand for bottled water is elastic in the price range considered

When demand is elastic, a fall in price causes total revenue to rise because

the increase in quantity sold is large enough to offset the lower price

revenue

the total amount of funds that a seller receives from selling goods or services

If the demand for a product is perfectly inelastic, a decrease in the price of the product

will decrease total revenue