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:

Disaffirm Agreements

The legal action of renouncing or rejecting a contract or agreement, especially by minors.

Restatement (Second)

A collection of model legal principles designed to clarify, modernize, and otherwise improve American common law, particularly in contracts and torts.

Intoxication

A state of being under the influence of drugs or alcohol, affecting cognitive and physical functions.

Legal Age

The age at which an individual is recognized by law as being capable of entering into a legally binding contract, among other adult responsibilities and rights.