A decrease in price will result in an increase in total revenue if:
A) the percentage change in quantity demanded is less than the percentage change in price.
B) the percentage change in quantity demanded is greater than the percentage change in price.
C) demand is inelastic.
D) the consumer is operating along a linear demand curve at a point at which the price is very low and the quantity demanded is very high.
B
You might also like to view...
The advantage of using real GDP over nominal GDP is that:
A) it can be compared over time. B) it takes into account the distribution of income. C) it takes into account changes in ruling political party. D) it is easier to calculate.
Unlike most monopolies, unions do not attempt to use their market power to raise the equilibrium wage above its competitive level.
Answer the following statement true (T) or false (F)
Which of the following statements about a price-matching strategy is incorrect?
A. It may be applied in situations besides Bertrand oligopoly. B. It only guarantees to match prices that are advertised publicly. C. It requires that the firms can monitor their rival's prices. D. It reduces the incentive for a rival firm to initiate a price war.
Other things being equal, an expansion of commercial bank lending
A. is desirable during a period of demand-pull inflation. B. increases the money supply. C. changes the composition, but not the size, of the money supply. D. reduces the money supply.