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:

Nash Equilibrium

A concept in game theory where no player can benefit by changing their strategy while the other players keep theirs unchanged.

High Price

A cost that is considered to be at the upper end of the price range for a product or service.

Low Price

An amount charged for a product or service that is relatively lower than the average or general market level, often aimed at attracting customers or gaining market share.

Simultaneous-Move Game

A strategic scenario in game theory where all players make their decisions or choose their actions at the same time without knowledge of the other players' choices.