Along a Downward-Sloping, Straight-Line Demand Curve, Total Revenue Is Greatest

question 84

Multiple Choice

Along a downward-sloping, straight-line demand curve, total revenue is greatest where demand is

• A)inelastic.
• B)perfectly inelastic.
• C)perfectly elastic.
• D)elastic.
• E)unit elastic.

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Definitions:

Balance Deficit

The economic condition where total expenditures exceed total revenues in a given period, often in reference to national budgets or trade balances.

Current Account Deficit

Occurs when a country's total imports of goods, services, and transfers are greater than its total exports, indicating that it is spending more on foreign trade than it is earning.

Capital Account Deficit

Occurs when a country's total payments from its capital account transactions exceed its total receipts.

Goods Imports

The act of bringing in goods and services from a foreign country for trade or sale within a domestic market.