When Demand Is Inelastic, Revenues Increase and Production Costs Decrease

question 28

Multiple Choice

When demand is inelastic, revenues increase and production costs decrease as the quantity produced declines, total profits will always increase with a higher price. Therefore, monopolists:

• A) can't exist.
• B) can't exist for industries in which demand is relatively inelastic.
• C) can't maximize profits if they face a relatively inelastic demand.
• D) will always raise their price until they get to an elastic portion of the demand curve.

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Definitions:

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Sexual Activities

Behaviors involving sexual intercourse or other forms of sexual expression between individuals.

Teen Pregnancy

Pregnancy occurring in a young woman between the ages of 13 and 19.

Correlates

Correlates are factors or variables that are found to have a statistical relationship with each other, suggesting that when one changes, the other is likely to change in a predictable manner.