When Demand Is Elastic

question 44

Multiple Choice

When demand is elastic

• A) changes in price and changes in total revenue move in the same direction.
• B) there is no relationship between changes in price and changes in total revenue.
• C) changes in price and changes in total revenue move in opposite directions.
• D) for any change in price, total revenue will not change.

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Definitions:

Bundling

The practice of selling several products or services together as a single combined package, often at a discounted rate.

Package Deal

An offer or agreement involving multiple items or elements grouped together for sale as one combined unit.

Cross-selling

The practice of selling additional products or services to existing customers to enhance their value to the company.

Bundling

The practice of selling multiple products or services together as a single combined package, often at a discount compared to purchasing each one separately.