If a Good Is Price Inelastic, an Increase in Price

question 8

Multiple Choice

If a good is price inelastic, an increase in price will _____.

• A) increase the firm's total revenue
• B) cause a proportionate increase in costs
• C) lead to a fall in the firm's profits
• D) cause the demand curve to become vertical

---

Definitions:

Evolutionary Theory

A scientific theory that explains the diversity of life on Earth, proposing that species change over time through processes such as natural selection and genetic drift.

Siblings

Brothers or sisters, including those by full blood, half-blood, or through adoption.

Cousins

Relatives with whom one shares a common ancestor, but more distant than a sibling or a direct parent/child relationship.

Non-Family Members

Individuals who are not related by blood, marriage, or legal adoption to a particular person or family.