Multiple Choice
If a car dealership decides to offer a rebate to reduce the selling price of its cars and as a result finds an increase in its total revenues, then the demand for cars from this dealership is
A) price elastic.
B) price inelastic.
C) rebate inelastic.
D) unit elastic.
E) unknown.
Correct Answer:
Verified
Related Questions
Q3: When elasticity is 0.1, demand is
A)elastic.
B)inelastic.
C)unit elastic.
D)undefined.
Q4: If price falls from $100 to $99
Q5: Assume that demand is elastic.Of the elasticities
Q6: An elasticity of 2 would be considered
A)elastic.
B)inelastic.
C)unit
