Demand for a Good Is Inelastic If

question 159

Multiple Choice

Demand for a good is inelastic if:

• A) total revenue decreases when price decreases.
• B) the quantity effect outweighs the price effect of a price increase.
• C) the absolute value of price elasticity is greater than 1.
• D) None of these are correct.

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Definitions:

Merchant Buyer

A business entity that purchases goods in the course of business from suppliers to resell them to the final consumer.

Revocation And Rejection

Revocation and Rejection involve the withdrawal of an offer before acceptance or the refusal to accept an offer, respectively, in contract law.

Same Rights

The equal entitlements or privileges afforded to all individuals within a specified group or context.

Reasonable Number

A reasonable number is a quantity or amount considered to be fair, sensible, or appropriate under the circumstances, often used in legal and business contexts.