Which of the following statements is true? Group of answer choices b and d. Total revenue...
Which of the following statements is true?
Group of answer choices
b and d.
Total revenue is maximized when elasticity is one.
Goods are said to be price inelastic when the elasticity is greater than two.
Demand for milk is more elastic than demand for football tickets.
Demand for 5-cent candy is more elastic than demand for sweaters.
Homework Answers
First statement is correct. Total revenue is maximized when a elasticity is one.
When elasticity is greater than 1 the demand is said to be price elastic. Milk has a broader market so its demand is relatively inelastic. Expenditure of 5 cent candy is very small in the budget so its demand is inelastic. However when total revenue is maximum marginal revenue is zero and marginal revenue is zero when price elasticity is one.
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Which of the following statements is true?
Group of answer choices
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Question 9 Which of the following statements is true? The demand curve for a necessity is...
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