The price elasticity of supply for the good is elastic. If all output is sold, which combination accurately shows the relationship between the effect of a rise in price on the quantity supplied and the firm’s total revenue received?
- Aquantity supplied rises by greater percentage than price; total revenue falls
- Bquantity supplied rises by greater percentage than price; total revenue rises
- Cquantity supplied rises by smaller percentage than price; total revenue falls
- Dquantity supplied rises by smaller percentage than price; total revenue rises