If the demand for donuts is elastic, then a decrease in the price of donuts will a. not change total revenue of donut sellers. b. There is not enough information to answer this question. c. decrease total revenue of donut sellers.

Question

14-07-2021
Business

contestada

If the demand for donuts is elastic, then a decrease in the price of donuts will a. not change total revenue of donut sellers. b. There is not enough information to answer this question. c. decrease total revenue of donut sellers.

Respuesta :

Otras preguntas

Which of the following could an historian make an argument for regarding the relationship between imperial stability (an empire remaining unified and strong) an

Greg told his friend, I feel so helpless when every day I come across another assignment that is due! The stress management approach that would BEST address Gre

Which twist is stronger S or Z twist

An object falls for 1.7 seconds. Assuming uniform acceleration, how far has it moved?

As long as bread and good red wine remained to keep the men up, and appease their craving, they would not touch the cattle. But in the end, when all the barley

A baseball pitcher is on the mound preparing for the pitch. Which of Newton’s law is demonstrating by the ball before it is thrown? A. Newton’s 1st law B. Newt

Which pair below describes isotopes of the same element? A) an atom with 6 protons and 8 neutrons - an atom with 8 protons and 6 neutrons B) an atom with

Why is it important for students to learn about censorship ?

The look-out point of a tower is 60 feet above the ground. A man observes a fountain from the look-out point. The angle of depression to the fountain is 25°. W

I need help please?!!!!!!!

ewomazinoade ewomazinoade · Answer 1 · 2021-07-15T02:16:56+02:00

Answer:

increase the total revenue of donut sellers.

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.

Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases

Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.

If demand is elastic and price is reduce, the percentage reduction in price would be less than the total increase in quantity demanded. As a result, there would be an increase in total revenue.