高階econ-u02-d05
A firm cuts its price by 10% and total revenue rises. Over that range demand is:
A. Elastic, so the quantity increase outweighs the price cut✓ 答案
B. Inelastic, so revenue must fall
C. Perfectly inelastic
D. Unit elastic at every point
解說
Price down and total revenue up is the revenue test for elastic demand. If revenue fell, the range would be inelastic.