If Total Revenue Rises as a Result of a Decrease

question 111

Multiple Choice

If total revenue rises as a result of a decrease in the price of a given good, it follows that demand is

• A)inelastic.
• B)perfectly inelastic.
• C)elastic.
• D)unit elastic.
• E)none of the above

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Definitions:

Child and Dependent Care Credit

A tax credit offered to taxpayers to offset the cost of care for qualifying dependents, enabling the taxpayer to work or look for work.

Qualified Day Care Center

A child care facility that meets specific criteria set by tax law, potentially eligible for certain tax benefits.

American Opportunity Tax

An educational credit for sanctioned expenses related to an eligible student’s initial four years at a higher education institution.

Lifetime Learning Credits

A tax credit available to individuals who pay qualified tuition and related expenses, aimed to encourage lifelong learning and skill development.