If Demand Is Price Inelastic and the Price Is Lowered

question 41

Multiple Choice

If demand is price inelastic and the price is lowered, which of the following occurs?

• A) The total revenue of the firms selling the product is unchanged.
• B) The total expenditure increases and the total revenue decreases.
• C) The total expenditure decreases and the total revenue increases.
• D) The total revenue of the firms selling the product decreases.
• E) The quantity sold decreases.

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Definitions:

The CPU

The Central Processing Unit, which is the primary component of a computer that performs most of the processing inside a computer.

Data

Information that has been collected, organized, and can be interpreted or analyzed for various purposes.

Other Components

Additional parts, elements, or ingredients that are part of a larger system but not specified in the initial consideration.

Microcomputers

Small-sized computers that are powerful enough for individual use, including personal computers.