Join IDNLearn.com today and start getting the answers you've been searching for. Get prompt and accurate answers to your questions from our community of knowledgeable experts.

The total-revenue test for elasticity Multiple Choice applies to the short-run supply curve but not to the long-run supply curve. does not apply to demand, because price and quantity are inversely related. is equally applicable to both demand and supply. does not apply to supply, because price and total revenue have a positive correlation.

Sagot :

Because price and total revenue always move simultaneously, the total revenue test for elasticity does not apply to supply.

A total revenue test: what is it?

A total revenue test calculates the change in total revenue due to a change in a product or service's price in order to estimate the price elasticity of demand.

What connection does elasticity have with total revenue?

When demand is elastic (price elasticity > 1), there is a negative relationship between price and total revenue, which means that price increases will result in drops in total revenue. When demand is unit elastic (price elasticity = 1), price changes have no impact on overall revenue.

learn more about total revenue test here https://brainly.com/question/15842334

#SPJ4

Your engagement is important to us. Keep sharing your knowledge and experiences. Let's create a learning environment that is both enjoyable and beneficial. Thank you for choosing IDNLearn.com. We’re committed to providing accurate answers, so visit us again soon.