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a) A decrease in total revenue. b) No change in total revenue. c) A decrease in total revenue and the demand curve shifts to the left. d) An increase in total revenue.
D obviously
Increase in total revenue
If the demand is elastic, every price reduction will increase demand. This will result in higher turnover assuming that the company markets the product and availability is enured.
Since the product’s demand is elastic, associated by to the decrease in the product’s price… this scenario will lead to an increase in demand end with incease in revenue as well …. So correct answer is D.
Answer is D
The Concept of Elastic demand means that the demand for the product is high , price is the only constrain for the increase in demand . Taking a perfect example for GOLD where there is always a demand for the Yellow metal the only constrain is price . The only option to increase the Revenue is drop in price where there is elastic demand .
With the decrease in price of GOLD , offcourse this will lead to surge in demand and whenever there is surge in demand there has to be an increase in REVENUE .- so the answer is " D "
There will be an increase in total revenue. The answer is D
Answer :d
An increase in total revenue.
Option D is correct ..Since reduction in price will increase demand and ultimately increase revenue.
The answer id (d) An increase in total revenue.