Knowing the Price Elasticity of Demand Is Important in Business

question 70

Multiple Choice

Knowing the price elasticity of demand is important in business because it allows a manager to determine whether:

• A) a price increase will cause total revenue to rise or fall.
• B) an increase in supply will cause total profit to rise or fall.
• C) a price increase will cause the quantity demanded to rise or fall.
• D) a price increase will cause the demand to rise or fall.

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Definitions:

Parasympathetic Nervous System

Part of the autonomic nervous system responsible for conserving energy, slowing the heart rate, increasing intestinal and gland activity, and relaxing sphincter muscles.

Negative Symptoms

Symptoms of schizophrenia that are marked by deficits in functioning, such as apathy, lack of emotion, slowed speech, and slowed movement.

Positive Symptoms

Symptoms of schizophrenia that are marked by excesses in functioning, such as delusions, hallucinations, and disorganized speech or behavior.

Schizophrenia

A long-term mental disorder involving a breakdown in the relation between thought, emotion, and behavior, leading to faulty perception, inappropriate actions and feelings, withdrawal from reality into fantasy and delusion, and a sense of mental fragmentation.