ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A sharp increase in revenues demonstrated the elasticity of the product.
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A small increase in revenues demonstrated the unit elasticity of the product.
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A dramatic decline in revenues demonstrated the elasticity of the product.
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A dramatic decline in revenues demonstrated the inelasticity of the product.
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Detailed explanation-1: -Complements are products that increase the use of other products, products related in such a way that an increase in the price of one reduces the demand for both.
Detailed explanation-2: -As a price rises, two things occur: There is an increase in quantity supplied (a movement along the supply curve) There is a decrease in quantity demanded (a movement along the demand curve)
Detailed explanation-3: -The answer is b. inflationary effect. Inflation is a measure of the increase in a price of something. As the prices rises, less of it can be purchased with a given unit of money.
Detailed explanation-4: -Which of the following shows the effects on equilibrium price and quantity due to an increase in supply and a simultaneous decrease in demand? Equilibrium price falls and the change in equilibrium quantity is indeterminate.