All of the following are true regarding the relationship between price elasticity of demand and total revenues EXCEPT
A) when market demand is elastic, if the market price declines, then total revenues will rise.
B) when market demand is unit elastic, if the market price rises, then total revenues will not change.
C) when market demand is inelastic, if the market price falls, then total revenues will decrease.
D) when market demand is inelastic, if the market price rises, then total revenues will decrease.
D
You might also like to view...
Exhibit 1A-8 Straight line relationship
For the relationship shown in Exhibit 1A-8, suppose the price of hamburgers increases and hamburgers are a substitute for pizza. What change would occur on the graph?
A. There will be a movement upward and to the left along the curve. B. There will be a movement downward and to the right along the curve. C. The curve will shift. D. The slope of the curve will become steeper.
In accordance with the law of supply, both individual and market supply curves are drawn:
A. horizontal. B. vertical. C. downward-sloping. D. upward-sloping.
Monetary policy is more effective with fixed exchange rates than with floating exchange rates.
Answer the following statement true (T) or false (F)
In Figure 6.6 if price is P2, then the industry will:
A. expand. B. contract. C. stay the same size. D. cease to exist.