Multiple Choice
A physician's office expenses increase 10 percent,so she decides to raise the price of office visits.Assuming the demand curve for office visits does not shift,what will happen to the total number of office visits and practice revenues?
A) Office visits and total revenue stay the same if demand is elastic
B) Office visits and total revenue rise if demand is inelastic
C) Office visits and total revenue fall if demand is inelastic
D) Office visits will fall and total revenue will rise if demand is inelastic
E) Office visits will rise and total revenue will fall if demand is elastic
Correct Answer:
Verified
Correct Answer:
Verified
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