A Decrease in Price

question 115

Multiple Choice

A decrease in price:

• A) causes a decrease in total revenue due to the quantity effect.
• B) causes an increase in total revenue due to the price effect.
• C) does not cause a quantity effect when demand is perfectly inelastic.
• D) does not change quantity demanded if demand is elastic.

---

Definitions:

Hominin

Any of a group of extinct and living humans. Also called hominid.

Supraorbital Ridge

A prominent ridge of bone located above the eye sockets on the frontal bone of the skull.

First Toe

The big toe on the human foot, which plays a crucial role in balance and walking by bearing much of the weight of the body.

Out-of-Africa Hypothesis

A theory proposing that modern humans originated in Africa and dispersed to other continents, replacing previously existing hominid species.