To Maximise Its Revenue

question 4

Multiple Choice

To maximise its revenue,

• A) a firm facing elastic demand should always raise its price.
• B) a firm should always charge the highest price possible regardless of the elasticity of demand.
• C) a firm facing inelastic demand should always raise its price.
• D) None of the above answers is correct.

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Definitions:

Drug Abuse

The misuse of legal or illegal substances with the intention of creating pleasurable effects or escaping reality, potentially leading to dependence and harmful consequences.

Sedatives

Drugs that induce relaxation and sometimes intoxication by lowering the activity of the brain, the neurons, the muscles, the heart, and even by slowing the metabolic rate.

Barbiturates

Sedative and hypnotic drugs derived from barbituric acid that are used to treat anxiety, insomnia, and seizure disorders, but are associated with high risk of dependence.

Opiates

A class of drugs derived from opium that are used for pain relief, but can also be addictive.