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.

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Definitions:

Dog

A domesticated carnivorous mammal (Canis familiaris) known for its loyalty and companionship as a pet.

Beagle

A breed of small hound dog known for its keen sense of smell and used primarily for hunting hares.

Referent

The actual object, idea, or event that a word or symbol represents.

Jewel

A precious stone or gem that is cut and polished to be used in jewelry or as a decoration.