When demand is inelastic, an increase in price will cause an increase in total r

Question

When demand is inelastic, an increase in price will cause an increase in total revenue a decrease in total revenue no change in total revenue but an increase in quantity demanded no change in total revenue but a decrease in quantity demanded A key determinant of the price elasticity of supply is the time horizon Income of consumers price elasticity of demand Importance of the good in a consumer s budget If a 15% change in price results in a 20% change in quantity supplied, then the price elasticity of supply is about 1.33, and supply is elastic. 1 33, and supply is inelastic. 0.75, and supply is elastic 0.75, and supply is inelastic.

Explanation / Answer

Question 33) a

Increase in total revenue, because if demand is inelastic price has increased quantity bought would be same so revenue actually increases

Question 34) c

Price elasticity of demand,

Question 35) a

Here elasticity of demand formula

Elasticity = % change in quantity / % change in price

20/15= 1.33

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