If the Demand for Cigarettes Is Inelastic

question 53

Multiple Choice

If the demand for cigarettes is inelastic,

• A)Total revenue will rise if the price of cigarettes rises.
• B)No matter how high the price goes,the quantity demanded will not fall.
• C)Total revenue will fall if the price of cigarettes rises.
• D)A price reduction will actually cause the quantity demanded to fall.

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Definitions:

Responsibility Centres

Segments within an organization for which individual managers are accountable, focusing on financial performance and operational efficiency.

Participative Budgeting

A budgeting process where workers at all levels are involved in setting budget goals and objectives, fostering collaboration and buy-in.

Top Management

The highest level of managerial staff responsible for setting strategic goals and leading an organization.

Strategic Plan

A Strategic Plan is a company's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people.