You Raised the Price of Your Good by 20% and the Quantity

question 125

Multiple Choice

You raised the price of your good by 20% and the quantity demanded declined by 40%. Demand is:

• A) completely elastic and a decline in price would have yielded a total revenue decrease.
• B) completely inelastic and a decline in price would have yielded a total revenue increase.
• C) unitary elastic and a decline in price would have yielded no change in total revenue.
• D) unitary elastic and a decline in price would have yielded a total revenue decrease.
• E) elastic and a decline in price would have yielded a total revenue increase.

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Definitions:

Vested Benefits

Benefits that an employee has earned the right to receive, even if they no longer work for the employer, typically in a pension or retirement plan.

Postretirement Health Care Benefits

Benefits provided by an employer to retired employees, covering medical and health-related expenses.

Tax Deductible

Expenses or costs that can be subtracted from gross income to reduce the taxable income.