Price increment for higher total revenue

A price increase for Pixie’s cheesy fried grits by P₁ to P₂ would yield higher total as: (w) revenue because demand is price elastic. (x) supply since demand is unitarily elastic. (y) revenue since demand is price inelastic. (z) use of the good relative to its substitutes.

808_Price Elasticity of Demand5.png

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

View Complete Question

Related Questions in Microeconomics

Q : Linear demand curves and elasticity

When price falls and quantity rises along a negatively-sloped linear demand curve: (1) total revenues fall till elasticity equals zero, then this rises. (2) demand is decreasingly price elastic. (3) there is a contrad

Q : Rises price elasticity of demand for a

The price elasticity of demand for a good will tend to rise as the: (i) number of obtainable substitutes increases. (ii) consumer income level increases. (iii) good is a less significant budget item. (iv) time permitted for response decreases. (v) ela

Q : National Income in Equality Standard As

As per the equality standard of income distribution: (w) people should be paid according to their needs for income. (x) income should be distributed to resource owners. (y) justice requires national income to be divided equally. (z) people should be p

Q : Monopolistically competition in long

When a monopolistically competitive firm is in long-run equilibrium, in that case this is unlikely for: (w) MR = MC. (x) P to be greater than MC. (y) P to be greater than the minimum of the long run average cost curve. (z) accounting

Q : Downward-sloping demand curve The law

The law of demand is graphically demonstrated by: (1) Movement all along the supply curve. (2) The downward-sloping demand curve. (3) The rightward shift of demand curve. (4) Shifting of production possibilities. C

Q : Corporate Finance and Retained Earnings

I have a problem in economics on Corporate Finance and Retained Earnings. Please help me in the following question. The corporate income reserved by the corporation subsequent to paying corporate income taxes and dividends to the owners of general sto

Discover Q & A

Leading Solution Library

Avail More Than 1434284 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1961134
Asked

3,689

Active Tutors

1434284

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment