A Decrease in Total Revenue Will Result If

question 371

Multiple Choice

A decrease in total revenue will result if

• A) demand is inelastic and price decreases.
• B) demand is elastic and price increases.
• C) demand is elastic and price decreases.
• D) demand is unitary elastic and price decreases.

---

Definitions:

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Price of Steel

The price of steel is the cost for a specific weight or quantity of steel, a crucial material in construction, manufacturing, and infrastructure projects, influenced by factors such as market demand, production costs, and global economic conditions.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in a stable market condition without surplus or shortage.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where the amount sellers are willing to sell equals the amount buyers are willing to buy.