There Is NO Total Revenue Test for Price Elasticity of Supply

question 154

Multiple Choice

There is NO total revenue test for price elasticity of supply because:

• A)price and quantity supplied are usually inversely related.
• B)price and quantity supplied are usually positively related.
• C)total revenue will not usually change in the direction of a supply price change.
• D)price and quantity supplied are always negatively related.

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Definitions:

Nominal Interest Rates

Nominal interest rates are the stated interest rates on financial products without adjustment for inflation.

Rate of Inflation

The Rate of Inflation is the pace at which the general level of prices for goods and services is rising, eroding purchasing power.

Real Interest Rates

The interest rate adjusted for inflation, representing the real cost of borrowing and the real yield to lenders or investors.

Usury Laws

Regulations that impose a maximum interest rate that may be charged on loans.