Regarding Demand Elasticity, Which of the Following Statements Is Correct

question 163

Multiple Choice

Regarding demand elasticity, which of the following statements is correct?

• A)If demand for seller's product is elastic, a price increase will decrease total revenue.
• B)If demand for seller's product is elastic, a price increase will increase total revenue.
• C)If demand is exactly unit elastic, an increase in price will raise total revenue
• D)If demand is exactly unit elastic, an increase in price will raise total revenue.

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Definitions:

Not Positively Correlated

Refers to a statistical relationship between two variables where one variable does not necessarily increase as the other increases or decreases as the other decreases.

Multiple Smaller Orders

Refers to the strategy of breaking down large orders for goods or services into smaller ones, often to manage risk, improve cash flow, or respond more flexibly to market demand.

Match Supply

the process of adjusting production levels, inventory, or supply chain capacities to meet the current or forecasted demand effectively.

Increase Profitability

The process of enhancing a company's ability to generate profit, either by increasing revenue, reducing expenses, or both.