1. TRUE OR FALSE: When a pharmacist increases the price charged for a medicine with an elastic demand, the pharmacist's revenues will go up.
2. When the price of bananas is decreased by 50% percent, total revenues earned by banana vendors decreased. What can be concluded based on this information?
A. The price elasticity of demand for banana is 1.
B. The demand for banana is elastic.
C. The demand for banana is price inelastic.
D. The price elasticity of demand for banana is 5.
2. When the price of bananas is decreased by 50% percent, total revenues earned by banana vendors decreased. What can be concluded based on this information?
A. The price elasticity of demand for banana is 1.
B. The demand for banana is elastic.
C. The demand for banana is price inelastic.
D. The price elasticity of demand for banana is 5.
Answers & Comments
Answer:
1.True because the people will poor of decreasing the price of medicine
2.D.The price elasticity of demand for banana is 5