If a 2 Per Cent Rise in Price Leads to a 4

question 92

Multiple Choice

If a 2 per cent rise in price leads to a 4 per cent decrease in quantity demanded, then demand is

• A) elastic and total revenue increases.
• B) elastic, but we cannot tell what happens to total revenue without more information.
• C) elastic and total revenue decreases.
• D) inelastic and total revenue decreases.
• E) Total revenue decreases but we cannot tell if the demand is elastic or inelastic without more information.

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Definitions:

Stressful Situations

Situations that cause psychological or physical strain or tension.

Rational-emotive Therapy

A form of psychotherapy that identifies and challenges irrational beliefs, encouraging healthier thinking and behavior patterns.

Self-defeating Beliefs

Thoughts and beliefs that negatively affect a person's confidence, goals, or actions, often leading to undermining their own success.

Behavioral

Pertaining to the actions or responses of individuals or groups in relation to their environment or stimuli.