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A Supermarket Decides to Reduce the Price of Its Own

Question 10

Multiple Choice

A supermarket decides to reduce the price of its own brand of baked beans as a special offer for one week only. During this week it discovers that its total revenue on these baked beans increases. This indicates that


A) its own brand of baked beans is inelastic with respect to price.
B) the demand for its own brand of baked beans is inelastic with respect to income.
C) the demand for its own brand of baked beans is elastic with respect to income.
D) the demand for its own brand of baked beans is elastic with respect to price.
E) its own brand of baked beans is an inferior good.

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