Question

4) If the demand for widgets is inelastic, revenues will ______ if the price of widgets increases A) increase B) fall C) remain the same D) one cannot tell what will happen to revenues without specific elasticity numbers 

          4) If the demand for widgets is inelastic, revenues will ______ if the price of widgets increases
A) increase
B) fall
C) remain the same
D) one cannot tell what will happen to revenues without specific elasticity numbers
4) If the demand for widgets is inelastic, revenues will if the price of widgets increases A) increase B) fall C) remain the same D) one cannot tell what will happen to revenues without specific elasticity numbers

Added by Kim O.

Close

Principles of Economics
Principles of Economics
Gregory Mankiw 8th Edition
AceChat toggle button
Close icon
Ace pointing down

Please give Ace some feedback

Your feedback will help us improve your experience

Thumb up icon Thumb down icon
Thanks for your feedback!
Profile picture
If the demand for widgets is inelastic, revenues will if the price of widgets increases A) increase B) fall C) remain the same D) one cannot tell what will happen to revenues without specific elasticity numbers 4) If the demand for widgets is inelastic.revenues will increases if the price of widgets A) increase B) fall C) remain the same D) one cannot tell what will happen to revenues without specific elasticity numbers
Close icon
Play audio
Feedback
Powered by NumerAI
Kathleen Carty Danielle Fairburn
Ivan Kochetkov verified

Oluwadamilola Ameobi and 81 other subject Microeconomics educators are ready to help you.

Ask a new question
*

Labs

-

Want to see this concept in action?

NEW

Explore this concept interactively to see how it behaves as you change inputs.

View Labs
*

Key Concepts

-
Key Concept
Premium Feature
Explore the core concept behind this problem.
Play button
Key Concept
Premium Feature
Explore the core concept behind this problem.
Your browser does not support the video tag.
*

Recommended Videos

-
how-would-the-following-changes-in-price-affect-total-revenue-that-is-would-total-revenue-increase-2

How would the following changes in price affect total revenue? That is, would total revenue increase, decrease, or remain unchanged? a. Price falls and demand is inelastic. b. Price rises and demand is elastic. c. Price rises and supply is elastic. d. Price rises and supply is inelastic. e. Price rises and demand is inelastic. f. Price falls and demand is elastic. g. Price falls and demand is of unit-elasticity.

Economics: Principles, Problems, and Policies

Systems of Differential Equations

Chapter Review
how-would-the-following-changes-in-price-affect-total-revenue-that-is-would-total-revenue-increase-d-19006

How would the following changes in price affect total revenue? That is, would total revenue increase, decrease, or remain unchanged? a. Price falls and demand is inelastic. b. Price rises and demand is elastic. c. Price rises and supply is elastic. d. Price rises and supply is inelastic. e. Price rises and demand is inelastic. f. Price falls and demand is elastic. g. Price falls and demand is of unit elasticity.

Juan N.
how-would-the-following-changes-in-price-affect-total-revenue-that-is-would-total-revenue-increase-decrease-or-remain-unchanged-a-price-falls-and-demand-is-inelastic-b-price-rises-and-demand-is-elasti

How would the following changes in price affect total revenue? That is, would total revenue increase, decrease, or remain unchanged? a. Price falls and demand is inelastic. b. Price rises and demand is elastic. c. Price rises and supply is elastic. d. Price rises and supply is inelastic. e. Price rises and demand is inelastic. f. Price falls and demand is elastic. g. Price falls and demand is of unit elasticity.

Chandan G.
*

Recommended Textbooks

-
Principles of Economics

Principles of Economics

Gregory Mankiw 8th Edition
achievement 1,633 solutions
Principles of Microeconomics for AP® Courses

Principles of Microeconomics for AP® Courses

Steven A. Greenlaw, David Shapiro, Timothy Taylor 2nd Edition
achievement 1,821 solutions
Economics

Economics

Michael Parkin 12th Edition
achievement 1,587 solutions
*

Transcript

-
00:01 So for this question, it says how would the following changes in price affect total revenue? so i want to know what the change in price affect total revenue.
00:11 That is, would total revenue increase, decrease, or remain the same? so the first one is price falls and demand is inelastic.
00:32 So if price falls and demand is inelastic, then total revenue will decline.
00:56 And this is because if price is falling, people are going to buy less.
01:04 So the total revenue will decline because inelastic demand is different from elastic demand because elastic demand says that when price fall, people buy more and when price increase, people buy less but it's opposite for inelastic demand so total revenue will decrease for price falling and demand being in elastic and when price rises and demand is elastic because it's an elastic demand the total revenue will increase i'm sorry decrease and this is because since elastic demand um elastic demand says that when price increases you buy less when price reduces you buy more so price is increasing so because it's increasing on people are buying less so the revenue you're going to gain will be less so it's going to decrease the next one is price rises and supplies elastic so price rises and supply is elastic for that one total revenue would increase and the next one is price rises and supplies inelastic and for this the total revenue was still the total revenue would increase...
Need help? Use Ace
Ace is your personal tutor. It breaks down any question with clear steps so you can learn.
Start Using Ace
Ace is your personal tutor for learning
Step-by-step explanations
Instant summaries
Summarize YouTube videos
Understand textbook images or PDFs
Study tools like quizzes and flashcards
Listen to your notes as a podcast
Continue solving this problem
Create a free account to:
  • View full step-by-step solution
  • Ask follow-up questions with Ace AI
  • Save progress and study later
Continue Free
Join the community

18,000,000+

Students on Numerade

Trusted by students at 8,000+ universities

Numerade

Get step-by-step video solution
from top educators

Continue with Clever
or



By creating an account, you agree to the Terms of Service and Privacy Policy
Already have an account? Log In

A free answer
just for you

Watch the video solution with this free unlock.

Numerade

Log in to watch this video
...and 100,000,000 more!


EMAIL

PASSWORD

OR
Continue with Clever