When total revenue (TR) falls in monopoly then elasticity of demand is:
E =1
E >1
E <1
E =0
Correct Answer :
C. E <1
Related Questions
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Can be ignored
Cannot be ignored
Partially be ignored
None of the above
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Consumed
Expressed in numbers
Cannot be expressed in numbers
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The total utility is raising at an increasing rate
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equal to 2
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Slutsky approach
Hicksian approach
Marshallian approach
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Convex to the origin
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Supply curve for sugar will shift leftward (upward)
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Ceteris paribus clause in the law of demand means:
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The taste of the consumer does not change
The income of the consumer does not change
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Price and output determination
Price rigidity (price stickness)
Price leadership
Collusion among rivals
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Yield maximum total revenue
Minimize marginal cost
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Quantity exchanged and price would both fall
Quantity exchanged would rise and price might rise or fall
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Applied science
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If we measure the elasticity of demand with the help of the average and marginal revenue, the formula is:
Ed = AR/ (AR- MR)
Ed = MR/ (AR-MR)
Ed = AR/(MR-AR)
Ed = AR/ MR