Economics 0455 · IGCSE · Price elasticity of demand (PED)

Price elasticity of demand (PED) — practice question

The price elasticity of demand for a product is perfectly inelastic. What would happen to total revenue if the product’s price were reduced by $25\%$?

  • AIt will fall by $25\%.$
  • BIt will fall to zero.
  • CIt will remain unchanged.
  • DIt will rise by $25\%.$

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