Which of the Following Is Not True Regarding a Price

question 220

Multiple Choice

Which of the following is not true regarding a price elastic demand curve?

• A) Total revenue increases when price falls.
• B) The absolute value of price elasticity is a fraction less than 1.
• C) The absolute value of price elasticity is greater than 1.
• D) The percentage changes in quantity exceed the percentage changes in price for any small change in price.

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Definitions:

Equitable Treatment

Fair and impartial treatment of all parties involved in a legal matter or transaction.

Uniform Electronic Transactions Act

A set of laws enacted to establish the legal validity of electronic signatures and records in commercial transactions.

Mailbox Rule

A legal doctrine stating that an offer is considered accepted at the moment the acceptance is dispatched, not when it is received by the offeror.

Common Law

A legal system based on precedent and court decisions, rather than written laws and statutes.