The price elasticity of demand for eggs is 0.27.Therefore,an increase in the price of eggs will cause:
A) a decrease in egg suppliers' total revenue.
B) an increase in the demand for eggs.
C) an increase in egg suppliers' total revenue.
D) an increase in the quantity demand of eggs.

Question

Quizplus · Accepted Answer

The price elasticity of demand for eggs is inelastic (less than 1), meaning that an increase in price will lead to a proportionally smaller decrease in quantity demanded, thus increasing total revenue.

The Price Elasticity of Demand for Eggs Is 0