You Raised the Price of Your Good by 40% and the Quantity

question 30

Multiple Choice

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

• A) elastic and a decline in price would have yielded a total revenue decrease.
• B) inelastic and a decline in price would have yielded a total revenue increase.
• C) elastic and a decline in price would have yielded a total revenue increase.
• D) inelastic and a decline in price would have yielded a total revenue decrease.
• E) unitary elastic and a decline in the price would have yielded a total revenue increase.

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Definitions:

Barbiturates

Drugs that depress the activity of the central nervous system, reducing anxiety but impairing memory and judgment.

Depressant

A substance that reduces arousal or stimulation, affecting the central nervous system.

Stimulant

A substance that raises levels of physiological or nervous activity in the body.

Opiate

Refers to a group of drugs derived from opium used for their analgesic, sedative properties, and can lead to addiction.