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When the price of a product rises and the total revenue of sellers increase?
Wiki User
∙ 14y ago
You have an inelastic product.
Wiki User
∙ 14y ago
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Should rug sellers' increase the price of rugs due to the high demand?
If a product is in high demand, the chances are good that the seller of that product is going to increase the price. It is a basic principle of economics.
A price cut will increase the revenue a firm receives if the demand for its product is?
Either elastic or inelastic
Which concept of revenue is called price?
Average revenue is nothing but the price of the product. Average revenue is the same as price of the commodity
Explain the effects of a rise in the price on market when the price elasticity of demand for product is inelastic?
Revenue of the producer will increase since there will be no change in quantity demanded.
Inelastic demand curve?
Inelastic demand means a situation in which the demand for a product does not increase or decrease correspondingly with a fall or rise in its price. From the supplier's viewpoint, this is a highly desirable situation because price and total revenue are directly related; an increase in price increases total revenue despite a fall in the quantity demanded. An example of a product with inelastic demand is gasoline. Refer to link below.
Should rug sellers' increase the price of rugs due to the high demand?
If a product is in high demand, the chances are good that the seller of that product is going to increase the price. It is a basic principle of economics.
A price cut will increase the revenue a firm receives if the demand for its product is?
Either elastic or inelastic
Which concept of revenue is called price?
Average revenue is nothing but the price of the product. Average revenue is the same as price of the commodity
Explain the effects of a rise in the price on market when the price elasticity of demand for product is inelastic?
Revenue of the producer will increase since there will be no change in quantity demanded.
Supply has the potential to contribute to what?
Supply has the potential to contribute to demand. When a product is highly demanded, but the supply is low, a producer can increase their price. This process will increase revenue for the business.
Inelastic demand curve?
Inelastic demand means a situation in which the demand for a product does not increase or decrease correspondingly with a fall or rise in its price. From the supplier's viewpoint, this is a highly desirable situation because price and total revenue are directly related; an increase in price increases total revenue despite a fall in the quantity demanded. An example of a product with inelastic demand is gasoline. Refer to link below.
What happens to the deadweight loss and tax revenue when a tax is increased?
The deadweight loss of a tax rises more than proportionally as the tax rises. Tax revenue, however, may increase initially as a tax rises, but as the tax rises further, revenue eventually declines. For example; if you sell a product with a $1.00 tax, you have less tax revenue than if you sold twenty of the product with a .10 cent tax. When you increase a tax, the revenue goes down because the product will not sell at that higher price.
Why do firms try to sell more products or to sell them at higher prices?
To increase revenue. Revenue = Price x Quantity sold. So if a firm sells more products and/or sells products at a higher price, revenue will increase.
If demand is elastic and price is lowered total revenue will?
increase
If a price increase has little or no effect the demand for the product is?
When a price increase has little or no effect on the demand for a product, it is inelastic.
Price ceiling is a maximum legal price that sellers can charge for a product or service. True or False?
True
An increase in product price will cause?
the product supply increase. The quntity deman decrease
