If the Demand for a Good Is Elastic, Then

question 219

Multiple Choice

If the demand for a good is elastic, then:

• A) revenues increase when the price goes up.
• B) revenues decrease when the price goes up.
• C) any change in price is matched by an equal and opposite percentage change in quantity, so revenues stay the same.
• D) revenues decrease regardless of the direction of the price change.

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Definitions:

Trade Agreements

Formal agreements between countries that determine the rules of trade between them, including tariffs, import quotas, and product standards.

Trade Disputes

Conflicts that arise between countries or businesses over aspects of trade, including tariffs, trade barriers, or disagreements on trade agreements.

AACSB

The Association to Advance Collegiate Schools of Business is an accreditation body for business schools worldwide, ensuring that member institutions meet rigorous standards of quality and improvement in business education.

Responsible Management

An approach to management that seeks to make business decisions considering ethical values, social responsibility, and environmental sustainability.