If Some Product Has an Elastic Demand, Then We Can

question 135

Multiple Choice

If some product has an elastic demand, then we can expect

• A)a price increase to increase total revenue.
• B)total revenue to rise if price falls.
• C)that there are few substitutes for this product.
• D)the absolute value of the elasticity of demand coefficient to be less than 1.
• E)a smaller percentage change in the quantity demanded, given some percentage change in the price.

---

Definitions:

Compounded Monthly

A method of calculating interest where the accumulated interest is added to the principal amount at the end of each month.

Single Parent

An individual who has at least one child and raises them without the assistance of the other biological parent in the home.

Education

The systematic process of facilitating learning, or the acquisition of knowledge, skills, values, beliefs, and habits through methods such as teaching, training, storytelling, discussion, and directed research.

Compounded Monthly

Refers to the process where the interest earned is added to the principal sum each month, and future interest is calculated on the new total.