if the demand of a good is price elastic, then the revenue would increase if _____________.\np increases\np…

if the demand of a good is price elastic, then the revenue would increase if _____________.\np increases\np decreases\np remains unchanged.\nwe need more information\nquestion 8\n1 pts\nif the price of good x falls and the demand for good x is unit elastic, then the percentage rise in quantity demanded is _________ the percentage fall in price, and total revenue _________.\ngreater than; rises\nless than; falls\nequal to; remains constant\ngreater than; falls\nless than; rises

if the demand of a good is price elastic, then the revenue would increase if _____________.\np increases\np decreases\np remains unchanged.\nwe need more information\nquestion 8\n1 pts\nif the price of good x falls and the demand for good x is unit elastic, then the percentage rise in quantity demanded is _________ the percentage fall in price, and total revenue _________.\ngreater than; rises\nless than; falls\nequal to; remains constant\ngreater than; falls\nless than; rises

Answer

Brief Explanations:

For the first question, when demand is price - elastic, a decrease in price leads to a more than proportionate increase in quantity demanded, thus increasing revenue. For the second question, when demand is unit - elastic, the percentage change in quantity demanded equals the percentage change in price, and total revenue remains constant.

Answer:

  1. B. P decreases
  2. C. equal to; remains constant