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:

Invert Times

A term not recognized as a standard key term in familiar contexts, therefore considered NO.

Heparin

A substance formed in the liver that inhibits the coagulation of blood.

No Additive

Describes products, especially foods, that do not contain additional ingredients such as preservatives, colors, or artificial flavors.

No Anticoagulant

A condition or directive indicating that no substances that prevent blood clotting (anticoagulants) are to be used.