Question

To increase total revenue, firms with ______ demand should lower price, and firms with ______ demand should increase price.

elastic;unit
elastic; inelastic
inelastic; elastic
unit; inelastic

Answer 1

biko egbula m n'ezie na achọrọ m nke a. ee ma eleghị anya, ọ dịghị ihe ọ bụla probabaly ntutu agba akwụkwọ ndụ akwụkwọ ndụ

Step-by-step explanation:

Answer 2

b). elastic; inelastic

Step-by-step explanation:

Elastic demand is characterized as the demand that is subject to change due to a variation in price. For example; if the price of Air conditioners increases, their demand would decrease due to their sensitivity towards price changes(having an elastic demand). While an inelastic demand is characterized as the demand that is indifferent to change in price. The demand for such goods remains the same irrespective of alteration in price. For example; salt and other necessary items. Thus, it is required to lower the prices of goods with elastic demand and increasing the prices of goods with inelastic demand in order to uplift the total revenue.