Economics · May / June 2019 · Paper 12 · Question 6
2281Price elasticity of demand (PED)
What can be concluded from the demand curve for the product shown in the diagram?
- APrice increases will raise the producers’ revenue.
- BProducers are unable to respond to a price rise.
- CThe product is one with many substitutes.
- DThere are 20 people able to buy the product.
As printed in the paper
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Correct answer: A. Price increases will raise the producers’ revenue.
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