Which of the following could be the price elasticity of demand for a good for which a decrease in price would increase revenue?
A) 0
B) 0.2
C) 1
D) 2.1

Name: Which of the following could be the price elasticity of demand for a good for which a decrease in price would increase revenue? A) 0 B) 0.2 C) 1 D) 2.1
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Question

Quizplus · Accepted Answer

A price elasticity of demand greater than 1 (elastic demand) means that a decrease in price will lead to a proportionally larger increase in quantity demanded, thus increasing total revenue.

Which of the Following Could Be the Price Elasticity of Demand