ZuoTi.Pro
Question

Which of the following statements is true? Group of answer choices b and d. Total revenue...

Which of the following statements is true?

Group of answer choices

b and d.

Total revenue is maximized when elasticity is one.

Goods are said to be price inelastic when the elasticity is greater than two.

Demand for milk is more elastic than demand for football tickets.

Demand for 5-cent candy is more elastic than demand for sweaters.

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

First statement is correct. Total revenue is maximized when a elasticity is one.

When elasticity is greater than 1 the demand is said to be price elastic. Milk has a broader market so its demand is relatively inelastic. Expenditure of 5 cent candy is very small in the budget so its demand is inelastic. However when total revenue is maximum marginal revenue is zero and marginal revenue is zero when price elasticity is one.

0 0
Add a comment
Know the answer?
Add Answer to:
Which of the following statements is true? Group of answer choices b and d. Total revenue...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Which of the following statements is true? If the price of a good is lowered and...

    Which of the following statements is true? If the price of a good is lowered and total revenue decreases, demand is elastic. If the price of a good is raised and total revenue does not change, demand is perfectly elastic. If the price of a good is lowered and total revenue increases, demand is inelastic. If the price of a good is raised and total revenue increases, demand is inelastic. and relatively inelastic demand is represented by a demand curve...

  • Question 9 Which of the following statements is true? The demand curve for a necessity is...

    Question 9 Which of the following statements is true? The demand curve for a necessity is more elastic than the demand curve for a luxury. The more time that passes the more inelastic the demand for a product becomes. The more narrowly we define a market, the more elastic the demand for a product will be. In general, if a product has few substitutes it will have an elastic demand. OOOO Question 10 The income elasticity of demand measures the...

  • Which of the following statements regarding price elasticity of demand is true? O The revenue for...

    Which of the following statements regarding price elasticity of demand is true? O The revenue for a product's sales is maximized where price elasticity = -1 because this is where changes in unit sales and unit price exactly offset each other O The revenue for a product's sales is maximized where price elasticity= -1 because this is where the quantity sales and market share are maximized O The revenue for a product's sales is maximized where price elasticity is less...

  • Which of the following statements about the price elasticity of demand is correct?

     Question 5 Which of the following statements about the price elasticity of demand is correct? The absolute value of the elasticity of demand ranges from zero to one. The elasticity of demand for a good in general is equal to the elasticity of demand for a specific brand of the good. Demand is more elastic the smaller the percentage of the consumer's budget the item takes up. Demand is more elastic in the long run than it is in the short run. Question 6 The cross-price elasticity...

  • What of the following statements is not true about group price discrimination? Group of answer choices...

    What of the following statements is not true about group price discrimination? Group of answer choices it is less difficult to charge different prices to different consumers if a good is an individually provided service, such as haircuts the group of consumers with more elastic demand (as a given price) will be charged a higher price in theory the good considered must be the same, but in the real world a price discriminating monopolist may need to change the good...

  • ​Demand is more elastic: a. ​in the short run than in the long run. b. ​for...

    ​Demand is more elastic: a. ​in the short run than in the long run. b. ​for goods with many substitutes than for goods with only a few. c. ​for goods with no substitutes. d. ​for necessities than for luxuries. e. ​for broadly defined goods than for narrowly defined ones. All other things constant, if a _____ proportion of a consumer’s budget is spent on a good, the demand for the good will be more _____ and a consumer will purchase...

  • 1)Explain what it means when demand is inelastic? 2) If demand is elastic, total revenue will...

    1)Explain what it means when demand is inelastic? 2) If demand is elastic, total revenue will increase when the price decreases? True or False? 3) The price elasticity of supply will be a smaller number when it is relatively easy for sellers to increase their supply. ( True or False)? 4) Demand is more elastic when the absolute value of the price elasticity of demand is larger. ( True or False)? 5) If the quantity demanded of one good increases...

  • Question 17 Which of the following statements is true? If the price of a good is...

    Question 17 Which of the following statements is true? If the price of a good is lowered and total revenue decreases, demand is elastic, If the price of a good is raised and total revenue increases, demand is inelastic. If the price of a good is raised and total revenue does not change demand is perfectly elastic, If the price of a good is lowered and total revenue increases, demand is inelastic.

  • Demand is inelastic if the price elasticity of demand is greater than 1. Group of answer...

    Demand is inelastic if the price elasticity of demand is greater than 1. Group of answer choices True False

  • Which of the following statements is true?​ ​The lowest of the federal or state minimum wage...

    Which of the following statements is true?​ ​The lowest of the federal or state minimum wage levels prevails in each state. ​The minimum wage has the greatest impact on the skilled labor market. ​The minimum wage has the greatest impact on the unskilled labor market. ​The intention of a minimum wage is to raise the wage rate for the skilled workers. ​The federal minimum wage, in the United States, is followed by all the states as their minimum wage. Hydraulic...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT