If the Price of Good X Falls and the Demand

question 1

Multiple Choice

If the price of good X falls and the demand for good X is inelastic, then the percentage __________ in quantity demanded is __________ the percentage fall in price, and total revenue __________.

• A)fall; greater than; rises
• B)rise; less than; rises
• C)fall; equal to; remains constant
• D)rise; less than; falls
• E)fall; greater than; falls

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Definitions:

Pension Payments

Regular payments made to retirees or their beneficiaries from a pension fund.

Actuarial Assumed Rate

The interest rate that an actuary determines to calculate the present value of future pension benefits or contributions.

Risk Averse

A description of an investor's preference for lower risk investments, often characterized by a willingness to accept lower returns in exchange for reduced risk.

Empirical Evidence

Information derived from observation or experimentation that serves as the basis for knowledge or theory.