If a Change in Price Causes Total Revenue to Change

question 207

Multiple Choice

If a change in price causes total revenue to change in the same direction,we can conclude that the demand is:

• A)price inelastic.
• B)price elastic.
• C)price unit-elastic.
• D)zero elastic.

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Definitions:

Cost Data

Information related to the expenses incurred in producing a product or delivering a service.

Price Elasticity of Demand

A measure of the sensitivity of quantity demanded to a change in price, indicating how much the quantity demanded of a good will change when its price changes.

Market Power

The ability of a company or group of companies to manipulate or control prices and total market output.

Oligopolistic

Pertaining to a market structure characterized by a small number of firms whose actions and policies can significantly impact the entire market.