From a firm's point of view,when the demand for a good has a price elasticity of 0.5,then,all things remaining the same,a(n)________.
A) increase in the price of the good will decrease the firm's revenue
B) increase in the price of the good will increase the firm's revenue
C) change in the price of the good will not affect the firm's revenue
D) change in the price of the good will not affect the quantity demanded of the good by consumers

Question

Quizplus · Accepted Answer

When the price elasticity of demand is less than 1 (inelastic), an increase in price leads to a less-than-proportionate decrease in quantity demanded, resulting in an increase in total revenue for the firm.

From a Firm's Point of View,when the Demand for a Good