Over the Elastic Portion of a Demand Curve, a Decrease

question 69

Multiple Choice

Over the elastic portion of a demand curve, a decrease in price causes:

• A) an increase in total revenue.
• B) a decrease in total revenue.
• C) no change in total revenue.
• D) an increase in quantity demanded, but anything can happen to revenue.

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Definitions:

After-Sale Service

Services provided to a customer after a product has been purchased, including support, maintenance, and repair services, aimed at ensuring customer satisfaction and loyalty.

Product Development

The complete process of bringing a new product or service to market, from initial concept through design, manufacturing, and launch.

Market Segmentation

The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors who might require separate products or marketing strategies.

Prospective Buyers

Individuals or entities showing interest in purchasing a product or service, being considered potential customers by sellers.