When a 2 Percent Increase in Price Generates a Greater

question 49

Multiple Choice

When a 2 percent increase in price generates a greater than 2 percent decrease in quantity demanded, then:

• A) demand is price inelastic.
• B) total revenue increases.
• C) demand is positively sloped.
• D) demand is unit elastic.
• E) total revenue decreases.

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Definitions:

Intangibles

Intangibles refer to non-physical assets that have value, such as intellectual property, goodwill, and brand recognition.

Proceeds

The amount of money obtained from an event or transaction, such as the sale of goods or property.

Creditors

Creditors are individuals, businesses, or entities that are owed money by debtors, typically arising from the provision of goods, services, or loans.

Repossess Property

The act of a lender taking back an object, typically a vehicle or real estate, from the borrower due to failure to meet the terms of the loan agreement.