Holding All Other Forces Constant,if Increasing the Price of a Good

question 168

Multiple Choice

Holding all other forces constant,if increasing the price of a good leads to an increase in total revenue,then the demand for the good must be

• A)unit elastic.
• B)inelastic.
• C)elastic.
• D)None of the above is correct because a price increase always leads to an increase in total revenue.

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Definitions:

Money Supply

The entire aggregate of monetary assets available at a certain period in an economy.

Federal Reserve System

The central banking system of the United States, responsible for monetary policy, banking supervision, and financial services.

Policy

A course or principle of action adopted or proposed by an organization or individual.

Board of Governors

A governing body or executive committee that oversees the policy-making, management, and proper conduct of an organization, institution, or central bank.