From a Firm's Point of View,when the Demand for a Good

question 133

Multiple Choice

From a firm's point of view,when the demand for a good has a price elasticity of 0.5,then,all things remaining the same,a(n) ________.

• A) increase in the price of the good will decrease the firm's revenue
• B) increase in the price of the good will increase the firm's revenue
• C) change in the price of the good will not affect the firm's revenue
• D) change in the price of the good will not affect the quantity demanded of the good by consumers

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Definitions:

Additional Revenue

Extra income received by a business or government beyond what was originally forecasted or expected.

Factor of Production

Resources used in the production of goods and services, such as labor, capital, land, and entrepreneurship.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices during a specific time period.

Productivity

Refers to the efficiency of production in terms of units produced per unit of input, such as labor or capital.