Total Revenue Increased for a Firm Operating in the Elastic

question 30

Multiple Choice

Total revenue increased for a firm operating in the elastic range of its demand curve.Which of the following statements is correct?

• A)The firm must have raised price.
• B)The firm must have lowered price.
• C)Quantity demanded must have increased.
• D)both a and c
• E)both b and c

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Definitions:

Utility Function

Mathematical model that quantifies satisfaction levels consumers receive from consuming various quantities of goods and services, guiding choices under constraint.

Consumer's Surplus

The gap between what consumers are prepared and capable of spending for a product or service and the aggregate sum they end up paying.

Earplugs

Small devices inserted into the ear canal to protect the ears from loud noises, water, foreign bodies, or excessive wind.

Utility Function

A mathematical representation that ranks individuals' or consumers' preferences for a set of goods or services, indicating satisfaction levels.