Which among the following statement is INCORRECT? Show 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. When the demand for a is perfectly inelastic a price increase will result in?When demand is perfectly inelastic, an increase in price will result in an increase in total revenue.
What happens when demand is perfectly inelastic?Perfectly inelastic demand means that prices or quantities are fixed and are not affected by the other variable.
When demand is inelastic a decrease in price increases total revenue?For an inelastic good, a one percent change in the price results in a less than one percent change in the quantity demanded. A price increase for an inelastic good will increase total revenue while a price decrease for an inelastic good decreases total revenue.
When demand is elastic an increase in price will result in an increase in total revenue?If demand is elastic at a given price level, then should a company cut its price, the percentage drop in price will result in an even larger percentage increase in the quantity sold—thus raising total revenue.
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When demand is a perfectly inelastic and increase in price will result in a decrease in total revenue and increase in total revenue?
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