If Elasticity of Demand Is Less Than 1

question 155

Multiple Choice

If elasticity of demand is less than 1:

• A) a rise in price decreases total revenue.
• B) a decline in price increases total revenue.
• C) a decline in price will not change total revenue.
• D) a rise in price increases total revenue.

---

Definitions:

Expressly Specify

To clearly and specifically state or define terms or conditions within an agreement or document.

Reasonable Mode

pertains to a method or manner of action that is considered fair, sensible, and appropriate under the given circumstances.

Merely Inquiring

Simply asking questions or seeking information without implying further action or commitment.

Constitutes Rejection

Acts or circumstances that are deemed to legally reject or decline an offer or proposal.