Which of the Following Could Be the Price Elasticity of Demand

question 179

Multiple Choice

Which of the following could be the price elasticity of demand for a good for which a decrease in price would increase total revenue?

• A)0.9
• B)0.0
• C)1
• D)2.5

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Definitions:

Invoice

Bill for goods or services provided by the seller to the purchaser.

Bill

A short-term debt instrument issued by a government as a means of borrowing money with a maturity of less than a year.

Goods

Physical items that are produced, bought, or sold with the aim to satisfy the wants or needs of consumers.

Services

Actions or activities provided to satisfy the needs and wants of consumers without resulting in the ownership of a tangible product.