Economics 9708 · AS & A Level · Price elasticity of demand

Price elasticity of demand — practice question

A firm predicts that, if every other factor stays the same, raising its output will cause its revenue to decrease. What conclusion can be drawn from this?

  • AThe demand for the firm’s product is price-elastic.
  • BThe demand for the firm’s product is price-inelastic.
  • CThe supply of the firm’s product is price-elastic.
  • DThe supply of the firm’s product is price-inelastic.

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