Economics
Quick practice
Question 1 of 5
A company conducted a study to analyze the elasticity of demand for its product. The study showed that the price elasticity of demand was -0.75. How will an increase the product's price by 10% affect the company's total revenue?
A
Total revenue may increase or decrease, depending on other factors.
B
Total revenue will increase.
C
Total revenue will decrease.
Concepts
Topics in Demand and Supply Analysis
Currency Exchange Rates
International Trade and Capital Flows
Monetary and Fiscal Policy
Understanding Business Cycles
The Firm and Market Structures
Get unlimited practice with CFA Level 1 subscription
Boost your performance with adaptive practice tests
Practice every concept in the syllabus
Compare your speed and accuracy with your peers
Download the app and practice on the go