For the discounted price of iPhones in Emirates to succeed in increasing the total revenue of Etisalat,
A) Etisalat should be operating at the unit elastic region of the demand curve.
B) Etisalat should be operating at the inelastic region of the demand curve.
C) demand for iPhones should be perfectly elastic.
D) Etisalat should be operating at the elastic region of the demand curve.

Question

Quizplus · Accepted Answer

When operating in the elastic region of the demand curve, a decrease in price leads to a proportionally larger increase in quantity demanded, thus increasing total revenue.

For the Discounted Price of IPhones in Emirates to Succeed