Q278
Suppose the demand for meals at a medium-priced restaurant is elastic. If the management of the restaurant is considering rasiing prices, it can expect a relatively
A.
Large fall in quantity demanded
AnswerB.
Large fall in demand
C.
Small fall in quantity demanded
D.
Small fall in demand
Answer: Option A
Solution
Answer: Option A
Solution:
Suppose the demand for meals at a medium-priced restaurant is elastic. If the management of the restaurant is considering rasiing prices, it can expect a relatively large fall in quantity demanded.