If the Price Elasticity of Demand for Computers Is Greater

question 145

Multiple Choice

If the price elasticity of demand for computers is greater than 1, then an increase in computer prices will

• A)lower total revenue.
• B)raise total revenue.
• C)not change total revenue.
• D)either raise or lower total revenue, depending on the starting price.
• E)lead to a higher percentage change in total revenue than the percentage change in price.

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Definitions:

Lump

To group together indiscriminately or to consider as part of a single category without recognizing individual differences.

Mutually Exclusive

A condition or scenario where two or more events cannot occur at the same time.

Sharp Borders

Clearly defined boundaries or distinctions that separate one entity or concept from another, without overlap or ambiguity.

Referents

Entities in the world that words or phrases refer to or denote in discourse.