The price elasticity of demand for a good is calculated as 1.36. From this elasticity co-efficient, we can tell that: (2) (1) The good is not a necessity; (2) The good has many close substitutes; (3) Producers can increase total revenue by decreasing the price of the good; (4) Statements 1, 2 and 3 are all correct

The price elasticity of demand for a good is calculated as 1.36. From this elasticity co-efficient, we can tell that: (2) (1) The good is not a necessity; (2) The good has many close substitutes; (3) Producers can increase total revenue by decreasing the price of the good; (4) Statements 1, 2 and 3 are all correct

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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