A-LevelEconomicsThe price system and the microeconomy9708/12 · Oct/Nov 2012 · Q71 Mark
A manufacturer increases the price of his product in an attempt to increase total revenue. The table shows the outcome of the policy. price () total revenue 000's () 4 400 5 500 6 600 What is the price elasticity of demand for the product?
Aperfectly elastic
Bperfectly inelastic
Crelatively elastic
Drelatively inelastic
✓ Correct answer
B: perfectly inelastic
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