If a Firm Increases Its Prices When the Demand Is

question 127

Multiple Choice

If a firm increases its prices when the demand is inelastic, then the firm will see

• A)an increase in revenues.
• B)a decrease in revenues.
• C)no change in revenues.
• D)no effect on the sales of its product.

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Definitions:

Learning Modifies

The process by which experience or practice results in a relatively permanent change in behavior or potential behavior.

Learning Selectivity

Learning selectivity is the process by which individuals focus on and encode information that is most relevant or important, ignoring less relevant information.

Animal Misbehavior

Actions or behaviors exhibited by animals that are not in alignment with the expected or trained responses, often from the perspective of human observers or trainers.

Instinctive Drift

When operant behavior deteriorates despite continued reinforcement due to the elicitation of instinctive behaviors.