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

Price elasticity of demand — practice question

For a product with inelastic price elasticity of demand, what impact will a decrease in supply have on producer revenue and consumer surplus?

  • Aproducer revenue: fall; consumer surplus: fall
  • Bproducer revenue: fall; consumer surplus: rise
  • Cproducer revenue: rise; consumer surplus: fall
  • Dproducer revenue: rise; consumer surplus: rise

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