Suppose the demand for a deluxe thali at a medium-priced restaurant is elastic. If the management of the restaurant is considering raising prices, it can expect a relatively :
A. larger fall in quantity demanded
B. larger fall in demand
C. smaller fall in quantity demanded
D. smaller fall in demand
Answer:A
Suppose the demand for a deluxe thali at a medium-priced restaurant is elastic. If the management of the restaurant is considering raising prices, it can expect a relatively :
A. larger fall in quantity demanded B. larger fall in demand C. smaller fall in quantity demanded D. smaller fall in demand