Question | For each of the following cases, what is the expected impact on the total revenue of the firm? Explain your reasoning. a. Price elasticity of demand is known to be -0.5, and the firm raises price by 10 percent. b. Price elasticity of demand is known to be -2.5, and the firm lowers price by 5 percent. c. Price elasticity of demand is known to be -1.0, and the firm raises price by 1 percent. d. Price elasticity of demand is known to be 0, and the firm raises price by 50 percent. |
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Subject | business economics |