A company knows that its product is demanded elastically. To maximizerevenue it should:(a) Increase price;(b) Decrease price;(c) Leave the price unchanged as it is impossible to affect total revenue;(d) None of the above

If a firm wants to maximise total revenue it must:Group of answer choicesProduce where the demand curve is unit elasticProduce where the supply curve is unit elasticCharge a price equal to marginal costCreate excess demandNone of the answers in this list are correct.

f the demands for goods is price elastic, an increase in its price will increase total revenue in that market.Question 2AnswerTrueFalse

If the price elasticity of demand for a product is unity, a decrease in price will:Multiple Choicehave no effect upon the amount purchased.increase the quantity demanded and increase total revenue.increase the quantity demanded, but decrease total revenue.increase the quantity demanded, but total revenue will be unchanged.

If the quantity demanded of a good is sensitive to a change in the price of that good, demand is said to be elastic.Question 5AnswerTrueFalse

If a monopolistically competitive seller can convince buyers that its product is of better quality and value than products sold by rival firms, all of the following occur EXCEPT _______________.a.demand increases.b.the firm gains more control over its pricec.demand becomes more inelastic.d.demand becomes perfectly elastic.