The price elasticity of demand for personal computers is -1.5. Which of the following is true? a. An increase in the price of personal computers will increase total revenue of sellers. b. A decrease in the price of personal computers will decrease total revenue of sellers. c. A decrease in the price of personal computers will increase total revenue of sellers. d. An increase in the price of personal computers will have no effect on total revenue of sellers.

ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter5: Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 4.9P: (Other Elasticity Measures) Complete each of the following sentences: a. The income elasticity of...
icon
Related questions
Question
The price elasticity of demand for personal computers is -1.5. Which of the following is true? a. An increase in the price of personal computers will increase total revenue of sellers. b. A decrease in the price of personal computers will decrease total revenue of sellers. c. A decrease in the price of personal computers will increase total revenue of sellers. d. An increase in the price of personal computers will have no effect on total revenue of sellers.
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Elasticity of demand
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
ECON MICRO
ECON MICRO
Economics
ISBN:
9781337000536
Author:
William A. McEachern
Publisher:
Cengage Learning
Principles of Microeconomics (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:
9781305971493
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Exploring Economics
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Economics:
Economics:
Economics
ISBN:
9781285859460
Author:
BOYES, William
Publisher:
Cengage Learning