Knowing the Price Elasticity of Demand Is Important in Business

question 70

Multiple Choice

Knowing the price elasticity of demand is important in business because it allows a manager to determine whether:

• A) a price increase will cause total revenue to rise or fall.
• B) an increase in supply will cause total profit to rise or fall.
• C) a price increase will cause the quantity demanded to rise or fall.
• D) a price increase will cause the demand to rise or fall.