If Demand Is Inelastic

question 73

Multiple Choice

If demand is inelastic:

• A) total revenue remains constant regardless of the price charged
• B) an increase in price will increase total revenue
• C) an increase in price will cause revenue to fall to zero
• D) a decrease in price will increase total revenue

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Definitions:

Scatterplot

A type of graph used in statistics to display values for typically two variables for a set of data.

Regression Line

A straight line that describes how a response variable y changes as an explanatory variable x changes, in linear regression analysis.

Best-Fitting Line

A line through a scatter plot of data points that best expresses the relationship between those points, often determined by the method of least squares.

Prime Time

The time period during which television audiences are the largest, often considered to be in the evening hours.