When demand is perfectly inelastic, an increase in price will result in
A. A decrease in total revenue
B. An increase in total revenue
C. No change in total revenue
D. A decrease in quantity demanded
Answer: Option B
Solution(By Examveda Team)
When demand is perfectly inelastic, an increase in price will result in an increase in total revenue.Join The Discussion
Comments ( 4 )
The capital that is consumed by an economy or a firm in the production process is known as
A. Capital loss
B. Production cost
C. Dead-weight loss
D. Depreciation
Who propounded the opportunity cost theory of international trade?
A. Ricardo
B. Marshall
C. Heckscher & Ohlin
D. Haberler
Which among the following statement is INCORRECT?
A. On a linear demand curve, all the five forms of elasticity can be depicted
B. If two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection.
C. If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves.
D. The price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded.
A. Increase
B. Decrease
C. Remain the same
D. Become zero
This question holds good only for necessary goods and which have no substitutes like salt, medicine etc.
I wonder that option B would be incorrect. Because if change in quantity of commodity is zero then how revenue is likely to increase? Plz explain
Like necessities goods..ok
can someone give explanation for this question