Ask Question
BusinessBusiness
21 May, 00:47

The total-revenue test for elasticity:

A. is equally applicable to both demand and supply. B. does not apply to demand because price and quantity areinversely related. C. does not apply to supply because price and quantity aredirectly related. D. applies to the short-run supply curve, but not to thelong-run supply curve.

+2
Answers (1)
  1. 21 May, 02:10
    0
    Option (C) is correct.

    Explanation:

    The total revenue test is generally applicable to determine the demand for the product is elastic or inelastic.

    This is due to the fact that there is a positive relationship between the price of the product and the quantity demanded for that product. This means that as the price of a product increases then as a result the quantity supplied of that product also increases and as the price of a product decreases then as a result the quantity supplied of that product also decreases.

    There is no need to test the elasticity for supply of the products own company. Also, there is no need to test the capability or ability or willingness of its suppliers.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The total-revenue test for elasticity: A. is equally applicable to both demand and supply. B. does not apply to demand because price and ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
An American-style option with six months to maturity has a strike price of $42. The underlying stock now sells for $50. The call premium is $14. a.
Answers (1)
When pursuing a Blue Ocean strategy, a firm in a crowded marketplace attempts to out-compete rivals on both cost and product features with the goal of gaining market share at the expense of other competitors in the same industry.
Answers (1)
Which of the following is the best reason to avoid bankruptcy A) you don't have to pay your debts B) you always lose your home in a bankruptcy filing C) it's harder to get credit if you have filed for bankruptcy D) lenders have confidence in
Answers (1)
Activity rates from Quattrone Corporation's activity-based costing system are listed below. The company uses the activity rates to assign overhead costs to products: Activity Cost Pools Activity Rate Processing customer orders $102.
Answers (1)
Cronus Airlines has a contract that gives them the opportunity to purchase up to 13,000,000 gallons of jet fuel at $2.00 per gallon. The current market price of jet fuel is $2.3 per gallon.
Answers (1)
New Questions in Business
Stacey was invited to become a member of the class project team because the other members knew she had a high GPA and worked hard on all her individual assignments.
Answers (1)
Vaughn Manufacturing's prepaid insurance was $197000 at December 31, 2021 and $90300 at December 31, 2020. Insurance expense was $62000 for 2021 and $55000 for 2020.
Answers (1)
If a firm increases its sales and cost of goods sold while holding its inventories constant, then, other things held constant, its inventory turnover ratio will decrease. b.
Answers (1)
Which of the following is a disadvantage of the sole proprietorship form of ownership
Answers (2)
Products that are essential for life, such as water or groceries, yield more marginal utility than rare products, such as diamonds or luxury vehicles. A. True B. False.
Answers (1)
Home » Business » The total-revenue test for elasticity: A. is equally applicable to both demand and supply. B. does not apply to demand because price and quantity areinversely related. C. does not apply to supply because price and quantity aredirectly related. D.
Sign Up Forgot Password?