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MMLU-Pro / 7240 / If a business wants to increase its revenue and it knows that the demand price…

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

If a business wants to increase its revenue and it knows that the demand price elasticity of its product is equal to 0.78, it should

category

economics

options

  1. maintain current price because demand is unit elastic
  2. increase price because demand is inelastic
  3. decrease price because demand is unit elastic
  4. decrease price because demand is inelastic
  5. increase price because demand is unit elastic
  6. maintain current price because demand is inelastic
  7. decrease price because demand is unit inelastic
  8. decrease price because demand is elastic
  9. maintain current price because demand is elastic
  10. increase price because demand is elastic

src

ori_mmlu-high_school_microeconomics

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Source and history

Official source

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