Price and Total Revenue Are Inversely Related When Demand Is

question 23

Multiple Choice

Price and total revenue are inversely related when demand is:

• A)elastic.
• B)inelastic.
• C)unitary elastic.
• D)perfectly inelastic.

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Definitions:

Long-Run Price Elasticity

The measure of responsiveness of quantity demanded or supplied to a change in price over a long period, allowing all inputs to be adjusted.

Short-Run Price Elasticity

A measure of the responsiveness of quantity demanded or supplied to a price change over a short period.

Gasoline

A volatile, flammable liquid used primarily as fuel in internal combustion engines.

Labor Unions

are organizations that represent the collective interests of workers in negotiations with employers over wages, working conditions, and other aspects of employment.