If Total Revenue Increases When Price Increases

question 14

Multiple Choice

If total revenue increases when price increases:

• A) demand is elastic.
• B) demand is inelastic.
• C) demand is unit elastic.
• D) Any of these could be true.

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Definitions:

Satisfaction

The fulfilment of one's needs or desires through the consumption of goods or services, often used as a measure of consumer contentment with a product.

Marginal Utility

The additional satisfaction or utility that a consumer gains from consuming one more unit of a good or service.

Pretzels

A type of baked pastry made from dough that is commonly shaped into a knot and typically salted.

Utils

A hypothetical unit of measurement used in economics to quantify the level of utility or satisfaction gained from consuming goods and services.