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.

---

Definitions:

Conceptual Skill

The ability to understand complex situations and to develop creative and effective solutions.

Katz's Skills Model

A leadership theory identifying three essential skills for effective management: technical, human, and conceptual skills.

Social Judgment Skill

The ability to understand and interpret the feelings, thoughts, and behavior of others in social situations.

Mental Structures

The frameworks of the mind that support understanding, reasoning, decision-making, and memory.