The elasticity of demand for a firm’s product is 2. If the firm reduces its price by 20 percent, its sales revenue will increase by?

A good is said to be inferior if its demand?

A. rises as its price rises B. falls as its price rises C. rises as its price falls D. is perfectly inelastic Correct Answer: Option A – rises as its price rises Explanation: An inferior good is an economic term that describes a good whose demand drops when...

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