If the Demand for a Good Is Elastic, Then Total

question 31

Multiple Choice

If the demand for a good is elastic, then total revenue

• A) increases as price increases.
• B) remains constant as quantity demanded increases.
• C) increases as price decreases.
• D) decreases as quantity demanded increases.
• E) decreases as price decreases.

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Definitions:

Unconditioned Stimulus

A natural stimulus that effortlessly elicits a response with no learning required.

Conditioned Response

The learned response to a previously neutral stimulus that, after conditioning, comes to elicit a reaction through association with an unconditioned stimulus.

Asymptotic Level

The maximum level of conditioning.

Conditioned Response

The learned reaction or response to a previously neutral stimulus that, after conditioning, comes to elicit a specific response.