If the Absolute Value of the Price Elasticity of Demand

question 69

Multiple Choice

If the absolute value of the price elasticity of demand is greater than 1, then:

• A) an increase in price increases total revenue
• B) an increase in price has no affect total revenue.
• C) a decrease in price lowers total revenue.
• D) a decrease in price raises total revenue.
• E) a change in price has no affect on total revenue.

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Definitions:

Common Traits

Characteristics that are shared by most members of a culture or society, contributing to a collective sense of identity.

Projective Tests

Psychological assessment tools that use ambiguous stimuli to elicit responses that reveal aspects of an individual's personality.

Objective Tests

Standardized assessments that measure an individual's knowledge or abilities in a specific area, using questions with fixed responses.

Drawbacks

Negative aspects or disadvantages associated with a situation, action, or decision.