Suppose that you know that the price elasticity of demand is 1.3.  If we increase the price of the this product, then the total revenue will (select one): increase remain unchanged decrease

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section5.1: The Elasticity Of Demand
Problem 1QQ: Define the price elasticity of demand. Explain the relationship between total revenue and the price...
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Suppose that you know that the price elasticity of demand is 1.3.  If we increase the price of the this product, then the total revenue will (select one):

  1. increase
  2. remain unchanged
  3. decrease

 

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