When Demand Is Perfectly Inelastic, an Increase in Price Will

question 372

Multiple Choice

When demand is perfectly inelastic, an increase in price will

• A) leave total revenue unchanged.
• B) increase total revenue.
• C) decrease total revenue.
• D) either increase total revenue or decrease total revenue, but it is impossible to tell which.

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Definitions:

Validity

The quality of being logically or factually sound; the extent to which a concept, conclusion, or measurement is well-founded and corresponds accurately to the real world.

Projection

A psychological defense mechanism where individuals attribute their own undesirable feelings, motivations, or characteristics to other people.

Social Group

A collection of individuals who interact with each other, share similar characteristics, and collectively have a sense of unity or identity.

Perceptual Process

The series of steps by which individuals interpret and organize sensation to produce a meaningful experience of the world.