When Demand Is Price Inelastic

question 84

Multiple Choice

When demand is price inelastic,

• A) price and total revenue move in the same direction.
• B) price and total revenue move in the opposite direction.
• C) total revenue increases whether price goes up or down.
• D) total revenue decreases whether price goes up or down.

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Definitions:

Negative Reinforcement

A behavioral concept where the removal of an adverse stimulus strengthens a behavior or increases its likelihood of being repeated.

Operant Conditioning

A process of instruction where behaviors are adjusted by the application of reinforcements or deterrents.

Learned Association

The process by which two pieces of information, or a behavior and a response, are linked together through conditioning.

Response

A reaction to a specific stimulus or situation.