The Reason Firms That Face Elastic Demand Should Lower Price

question 132

Multiple Choice

The reason firms that face elastic demand should lower price to increase total revenue is that

• A) demand curves are downward-sloping.
• B) consumers prefer lower prices.
• C) the percentage increase in sales will be larger than the percentage decrease in price.
• D) more consumers will try their products.
• E) the percentage increase in sales will be smaller than the percentage decrease in price.

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Definitions:

Neuronal Multiplication

The process of neuron proliferation, where neurons divide and increase in number, particularly during prenatal development.

Neurons

Specialized cells of the nervous system that transmit information throughout the body in the form of electrical signals.

Embryonic Period

The stage of prenatal development from about the second to the eighth week after conception, where major organs and structures begin to develop.

Behavioral State

refers to an individual's current condition or manner of acting that encompasses emotional, arousal, and readiness to respond states.