P Is in Dollars and Q Is the Number of Units

question 72

Multiple Choice

p is in dollars and q is the number of units. Find the elasticity of the demand function at , and use it to determine how a price increase will affect total revenue. ​

• A)Since the demand is elastic, an increase in price will decrease the total revenue.
• B)Since the demand is elastic, an increase in price will increase the total revenue.
• C)Since the demand is inelastic, an increase in price will decrease the total revenue.
• D)Since the demand is inelastic, an increase in price will increase the total revenue.
• E)No change in revenue.

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Definitions:

Obligations

Duties or actions that an individual or entity is legally required to perform according to the terms of a contract or law.

Mutual Rescission

An agreement between all parties to a contract to terminate their respective duties under the contract.

Accord and Satisfaction

A legal agreement between parties to settle a dispute by one party paying a sum less than the amount originally owed and the other accepting it, effectively discharging the original claim.

Obligations

Duties or commitments imposed by law, contract, or moral responsibilities.