When a Firm Raises the Price of Its Product, What

question 125

Multiple Choice

When a firm raises the price of its product, what happens to its total revenue?

• A) If demand is elastic, total revenue decreases.
• B) If demand is elastic, total revenue increases.
• C) If demand is unit elastic, total revenue increases.
• D) If demand is inelastic, total revenue decreases.
• E) If demand is unit elastic, total revenue decreases.

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Definitions:

Mesosphere

The third layer of Earth's atmosphere, located above the stratosphere and below the thermosphere, characterized by decreasing temperatures with altitude.

Stratosphere

The layer of Earth's atmosphere located above the troposphere and below the mesosphere, known for containing the ozone layer.

Solar Activity

The phenomena that occur within the Sun's magnetically charged atmosphere, affecting space weather and climatic conditions on Earth.

Air

The invisible gaseous substance surrounding the Earth, a mixture mainly of oxygen and nitrogen.