A Price Increase Will Cause an Increase in Total Revenue

question 133

Multiple Choice

A price increase will cause an increase in total revenue when:

• A) the price effect outweighs the quantity effect.
• B) the quantity effect outweighs the price effect.
• C) demand is perfectly elastic.
• D) demand is unit elastic.

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Definitions:

Confidence Interval

A set of numbers obtained from statistical data from a sample, which is expected to encompass the value of a parameter from the overall population that is not known.

Defective

Describes an item that fails to meet quality standards or specifications, often resulting in malfunction or unsuitability for intended use.

Proportion

A part, share, or number considered in comparative relation to a whole.

Proportion

Refers to the ratio of a part or portion of the total count, quantity, or amount in a given context.