A price cut will increase the revenue a firm receives if the demand for its product is
A)elastic.
B)inelastic.
C)of unit elasticity.
D)straight elastic.

Name: A price cut will increase the revenue a firm receives if the demand for its product is A)elastic. B)inelastic. C)of unit elasticity. D)straight elastic.
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Question

Quizplus · Accepted Answer

If demand is elastic, a price cut will lead to a relatively larger increase in the quantity demanded compared to the decrease in price, resulting in an overall increase in revenue.

A Price Cut Will Increase the Revenue a Firm Receives