Answer:
Option (C) is correct.
Explanation:
The total revenue test is generally applicable to determine the demand for the product is elastic or inelastic.
This is due to the fact that there is a positive relationship between the price of the product and the quantity demanded for that product. This means that as the price of a product increases then as a result the quantity supplied of that product also increases and as the price of a product decreases then as a result the quantity supplied of that product also decreases.
There is no need to test the elasticity for supply of the products own company. Also, there is no need to test the capability or ability or willingness of its suppliers.
