Question

1) If a firm finds the demand for one of its products is inelastic, it can increase its total revenues by? A) increasing fixed costs only. B) increasing variable costs only. C) lowering its price. D) raising its price. E) increasing both fixed and variable costs.

Name: 1 if a firm finds the demand for one of its products is inelastic it can increase its total revenues by a increasing fixed costs only b increasing variable costs only c lowering its price d 41847
Uploaded: 2023-08-07T18:05:22-08:00
Duration: 1 min 3 s
Channel: Dave Kratz
Description: 1 if a firm finds the demand for one of its products is inelastic it can increase its total revenues by a increasing fixed costs only b increasing variable costs only c lowering its price d 41847

          1) If a firm finds the demand for one of its products is
inelastic, it can increase its total revenues by?
A) increasing fixed costs only.
B) increasing variable costs only.
C) lowering its price.
D) raising its price.
E) increasing both fixed and variable costs.

Added by Joshua N.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Dave Kratz

08/07/2023

Step 1

If the demand for a product is elastic, a change in price will result in a proportionate change in the quantity demanded. If the demand is inelastic, a change in price will result in a relatively smaller change in the quantity demanded. Show more…

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1) If a firm finds the demand for one of its products is inelastic, it can increase its total revenues by? A) increasing fixed costs only. B) increasing variable costs only. C) lowering its price. D) raising its price. E) increasing both fixed and variable costs.