Suppose the price elasticity of demand of a firm for its product is -1.2. If the price of the product is increased by 5%, then it is most probable…
CA Foundation · Business Economics · PYQS · September 2024
Suppose the price elasticity of demand of a firm for its product is -1.2. If the price of the product is increased by 5%, then it is most probable that :
Suggested Answer and Working Notes:
Correct Answer: Option (A)
A. Both total revenue and profit would decrease,
Topics: Theory of Demand and Supply
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