Suppose the Price Elasticity Coefficients of Demand Are 1

question 17

Multiple Choice

Suppose the price elasticity coefficients of demand are 1.43, 0.67, 1.11, and 0.29 for products W, X, Y, and Z, respectively. A 1 percent decrease in price will increase total revenue in the cases of

• A)W and Y.
• B)Y and Z.
• C)X and Z.
• D)Z and W.