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f hospitals decide to increase the price of emergency appendectomies (surgery operation to remove inflamed appendix) in order to increase its revenues, Question 5 options: A) It will be successful since the demand is inelastic. B) It will be successful since the supply is inelastic. C) It will be successful since the demand is elastic. D) Then the reason that it will NOT be successful is because the demand curve is downward sloping.

Respuesta :

Answer:

A) It will be successful since the demand is inelastic

Explanation:

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Demand is inelastic if a change in price has little or no effect on quantity demanded.

If demand is inelastic and prices increase, total revenue would increase because there would be a negligible change in quantity demanded.

Demand is elastic if a small change in price has a greater effect on the quantity demanded.

If demand is elastic and price is increased, Quanitity demanded would fall and revenue would fall

I hope my answer helps you

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