Demand Is Price Inelastic When

question 249

Multiple Choice

Demand is price inelastic when:

• A) price falls and total revenue decreases.
• B) price increases and total revenue decreases.
• C) price decreases and total revenue stays the same.
• D) price decreases and total revenue goes up.

Realize the significance of practice in developing selling skills beyond theoretical knowledge.

Identify the range of services provided by salespeople to customers, including handling merchandise returns.

Appreciate the professionalism in today's sales roles due to product knowledge and customer service.

Discern the importance of the right amount of assertiveness in business selling.

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Definitions:

Annual Payments

Regular payments made once a year, often related to loans, annuities, or other financial instruments.

EAR

Stands for Effective Annual Rate, which is the real return on an investment, accounting for the effect of compounding interest over a period.

Compounded Semi-Annually

Concerns the process where the interest earned on an investment is added to the principal twice a year, allowing the interest to earn interest.

Rate of Return

Indicates the percentage of profit or loss on an investment over a specific time period, expressing the gain or loss in comparison to the investment's cost.