WebbBesides international brands, local manufacturers will also be encouraged to invest and increase production,” he said. Incentive While the corpus for the proposed scheme has not yet been fixed, industry sources say that it may be around ₹2,600 crore with an incentive of up to 8 per cent on net incremental sales applicable for five years. Webb31 mars 2024 · Producers' total revenue will decrease if A. The price rises and demand is inelastic. B. income increases and the good is a normal good. C. the price rises and …

Solved > 131) Producers

WebbWhether the total revenue will grow or drop depends on the original price and quantity and the slope of the demand curve. For example, total revenue will rise due to an increase in … WebbPrice elasticity of demand = -12.8%/9.5% = -1.3. The demand for diet cola is price elastic, so total revenue moves in the direction of the quantity change. It falls from $500 per day before the price increase to $484 per day after the price increase. A demand curve can also be used to show changes in total revenue. b\u0026b de joker

Perfectly Competitive Firms & Output Decisions Outlier

WebbThe tax incidence depends on the relative price elasticity of supply and demand. When supply is more elastic than demand, buyers bear most of the tax burden. When demand … WebbWhen demand is elastic, an increase in supply will lead to an increase in total revenue while a decrease in supply will lead to a decrease in total revenue. Rational people and firms are assumed to make the most profitable decision, and total revenue helps firms to make these decisions because the profit that a firm can earn depends on the total … WebbAn increase in the supply of grain will reduce the total revenue grain producers receive if a. the supply curve is inelastic. b. the supply curve is elastic. c. the demand curve is inelastic. d. the demand curve is elastic. b\u0026b dijon