When a Firm Is on the Inelastic Segment of Its

question 37

Multiple Choice

When a firm is on the inelastic segment of its demand curve, it can

• A)increase total revenue by reducing price.
• B)decrease total costs by decreasing price.
• C)increase profits by increasing price.
• D)increase total revenue by more than the increase in total cost by increasing price.

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Definitions:

Casework

The assistance provided by members of legislative bodies to constituents dealing with governmental agencies and systems, often involving personal problems or requests.

Federal Government

The national government of a federal country, where powers are divided between the central authority and constituent units or states.

Congress

The national legislative body of the United States, consisting of two chambers: the Senate and the House of Representatives.

Cloture

A procedural action in the Senate for ending a filibuster or debate, requiring a supermajority vote to proceed to a final vote.