If the Price Elasticity of Demand for a Product Is

question 107

Multiple Choice

If the price elasticity of demand for a product is unity, a decrease in price will

• A)have no effect upon the amount purchased.
• B)increase the quantity demanded and increase total revenue.
• C)increase the quantity demanded but decrease total revenue.
• D)increase the quantity demanded, but total revenue will be unchanged.

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Definitions:

Lie

An intentionally false statement made with the purpose to deceive others, often leading to mistrust or manipulation in social relations.

Demand

Refers to the desire or need for products and services by consumers, often accompanied by the power to purchase them.

Prices

The amount of money required to purchase goods or services, set by the interplay of supply and demand in a market.

Consumers

Individuals or entities that purchase goods or services for personal use rather than for manufacturing or resale purposes.