CIMA Fundamentals of Business Economics BA1 Question # 77 Topic 8 Discussion

CIMA Fundamentals of Business Economics BA1 Question # 77 Topic 8 Discussion

BA1 Exam Topic 8 Question 77 Discussion:
Question #: 77
Topic #: 8

A business is selling a good with a price inelastic demand. If it decreases the supply of the good the result will be:


A.

the market price will rise, demand will contract and total revenue will rise


B.

the market price will rise, demand will contract and total revenue will fall


C.

the market price will rise, demand will decrease and total revenue will fall


D.

the market price will fall, demand will increase and total revenue will rise


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