Which of the Following Is FALSE Regarding Inelastic Demand

question 112

Multiple Choice

Which of the following is FALSE regarding inelastic demand?

• A)Price elasticity of demand is less than 1 ( < 1).
• B)If a firm raises price, total revenues will go up.
• C)Price elasticity of demand is greater than 1 ( > 1).
• D)If a firm lowers price, total revenues will fall.

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Definitions:

Merchant

An individual or business engaged in the selling of goods, especially on a large scale or with specialized knowledge.

Occupation

A person's principal job or business, especially as a means of earning a living.

Usage Of Trade

Established customs and practices in a particular industry that are considered to be an understood part of business agreements.

Sequence

An ordered list or arrangement of items, events, or actions following a specific logical or systematic pattern.