Economics (AS & A Level) · May / June 2022 · Paper 12 · Question 9
9708Price elasticity, income elasticity and cross elasticity of demand
What would be the most likely reason for a firm's decision to calculate the price elasticity of demand for its product?
- Ato provide retail statistics for the government
- Bto predict the change in its total revenue after it raises prices
- Cto calculate the firm's competitive position
- Dto enable the firm to complete consumer satisfaction surveys
As printed in the paper
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Correct answer: B. to predict the change in its total revenue after it raises prices
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