If the Total Revenue Received by a Firm Decreases When

question 245

Multiple Choice

If the total revenue received by a firm decreases when it raises its price, this indicates that the demand for the firm's product is:

• A) unstable.
• B) price inelastic.
• C) price elastic.
• D) unit price elastic.

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Definitions:

Sympathetic

Referring to the part of the autonomic nervous system that typically stimulates responses associated with fight or flight, such as increased heart rate.

Accelerator

A substance, device, or mechanism that increases the speed of a process or reaction.

Weiss (1971)

Reference to research by Weiss, often associated with studies on social isolation or the effects of stress on health.

Stressor

An external or internal event or stimulus that causes stress to an individual.