If Demand Is Price Inelastic, a Change in Price in Either

question 123

Multiple Choice

If demand is price inelastic, a change in price in either direction (up or down) causes:

• A) a change in total revenue in the opposite direction.
• B) a change in total revenue in the same direction.
• C) an increase in total revenue.
• D) a decrease in total revenue.

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Definitions:

Sale on Approval

A transaction agreement where the buyer has the right to return the item within a specified period if it does not meet their satisfaction.

Title

The formal right of ownership of property, which may include real estate or vehicles, among others.

Possession

The act of having physical control or ownership of an object or property.

Risk of Loss

A legal term that determines who bears the cost of damage to goods during a transaction or transportation before the purchaser receives them.