If an Increase in Price Results in No Change in Total

question 296

Multiple Choice

If an increase in price results in no change in total revenue, then demand must be

• A) inelastic.
• B) elastic.
• C) unit elastic.
• D) infinitely elastic.

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Definitions:

Variable Costs

Costs that vary directly with the level of production or sales, like raw materials and labor.

Economic Profit

The financial gain that exceeds both the total opportunity costs of production and the accounting costs, reflecting the additional value created from business activities.

Accounting Profit

The profit a company has after deducting all its expenses from its total revenue.

Verizon Wireless

A major American telecommunications company known for providing wireless products and services.