Question

Question 14 0.25 pts 14. Price elasticity of demand is known to be -10.0, and the firm lowers price by 10%. Which of the following expectations is most accurate? Revenue will fall, because the quantity demanded will drop by 100%. O Revenue will not change, because the increase in the quantity demanded will just offset the lower price. Revenue will rise, because the increase in the quantity demanded will more than offset the lower price. Revenue will fall, because the increase in the quantity demanded cannot offset the lower price.

Answer 1

Price elasticity of demand a change to change in in quantity (24) price lo x = -1 Vor) full, because the by 1004.. quantity demanded Revenue will will drop