Suppose that at a price of Rs 30 per month there are 30000 subscribers to cable television in small Town. If small Town Cablevision raise its price to Rs 40 per month the number of subscribers will fall to 20000 At which of the following price does small Town Cablevision earn the greatest total revenue ?

Elasticity 16/04/2025

A. Rs 0 per month
B. Rs 30 per month
C. Rs 40 per month
D. Either Rs 30 or Rs 40 per month because the price elasticity of demand is 1.0

Related Mcqs:

    in general a flatter demand curve is more likely to be ?
    A. price elastic B. unit price elastic C. none of these answers D. price inelastic...
    Which of the following would cause a demand curve for a good to be price inelastic ?
    A. The good is luxury B. There are a great number of substitutes for the good C. The good is a necessity D. The good is an inferior good...
    If the cross-price elasticity between two goods is negative the two goods are likely to be ?
    A. substitutes B. complements C. necessities D. luxuries...
    in general a flatter demand curve is more likely to be ?
    A. price elastic B. none of these answers C. unit price elastic D. price inelastic...
    The demand for which of the following is likely to be the most price inelastic ?
    A. transportation B. taxi rides C. bus tickets D. airline tickets...

Leave a Reply

Your email address will not be published. Required fields are marked *