Firms that produce goods with many substitutes will find that:
A)lowering price increases total revenues.
B)lowering price decreases total revenues.
C)raising price increases total revenues.
D)lowering price leaves total revenues unchanged.

Question

Quizplus · Accepted Answer

If consumers can choose from many substitutes,their demand is price elastic.Lower prices will cause a relatively large increase in quantity sold.

Firms That Produce Goods with Many Substitutes Will Find That