As a firm decreases its price more and more, what would be true about the demand elasticity that would be required to hold the firm's total contribution margin constant? 1) It would be impossible to tell without more information 2) It would go down 3) It would stay the same 4) It would go up

As a firm decreases its price more and more, what would be true about the demand elasticity that would be required to hold the firm's total contribution margin constant? 1) It would be impossible to tell without more information 2) It would go down 3) It would stay the same 4) It would go up

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 18SQ

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As a firm decreases its price more and more, what would be true about the demand
elasticity that would be required to hold the firm's total contribution margin
constant?
1) It would be impossible to tell without more information
2) It would go down
3) It would stay the same
J
4) It would go up

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