In the Elastic Portion of a Linear Demand Curve, Firm

question 102

Multiple Choice

In the elastic portion of a linear demand curve, firm revenue ______ when price falls.

• A) increases
• B) decreases
• C) remains the same
• D) changes in an indeterminate direction

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Definitions:

Sole Proprietorship

A business structure where a single individual owns, manages, and is personally responsible for all aspects of the business.

Additional Capital

Extra funds injected into a business or investment, beyond the initial capital.

Small Business Administration Loan

A type of loan offered by the Small Business Administration (SBA) to help small businesses get started or expand with less stringent qualifying criteria than conventional loans.

Bank Loan

A sum of money lent by a bank to an individual or organization under the agreement that it will be repaid with interest.