Holding all other forces constant, if increasing the price of a good leads to a decrease in total revenue, then the demand for the good must be
a. unit elastic.
b. inelastic.
c. elastic.
d. None of the above is correct because a price increase always leads to an decrease in total revenue.
c
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Does the principle of optimization imply that people always make the best choices?
What will be an ideal response?
What are the three main sets of factors that cause the supply and demand curves in the foreign exchange market to shift?
What will be an ideal response?
Refer to the table below. Because the extent of variation in the price of the input is ________ in Country B compared to Country A, it is less risky to plan to purchase the input in Country ________.
The above table provides the probability distribution of price of an input next year in Country A and Country B.
A) lower; A
B) greater; A
C) greater; B
D) lower; B
Opportunity cost is the
a. cost incurred when one fails to take advantage of an opportunity. b. cost incurred in order to increase the availability of attractive opportunities. c. cost of the best option forgone as a result of choosing an alternative. d. drudgery of the undesirable aspects of an option.