When Kelsey Decreases Her Price of Lipstick from $7 to $5,she

question 118

Multiple Choice

When Kelsey decreases her price of lipstick from $7 to $5,she finds that her sales increase from 6 to 7.She faces ________ demand for her product,and this price change will ________ her total revenue.

• A) elastic; raise
• B) inelastic; lower
• C) unitary elastic; not change
• D) perfectly elastic; raise
• E) perfectly inelastic; lower

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Definitions:

Draining

The act or process of depleting or being depleted of resources or energy.

Inert Substance

A substance that does not undergo chemical reactions under a set of given conditions, often used as a control in experiments.

Placebo

A harmless substance or treatment that has no therapeutic effect, used as a control in testing new drugs.

Relaxant

A substance or drug that reduces tension or strain in muscles, often used to alleviate muscle spasms or to induce relaxation.