If the Seller of Good X Raises the Price of Good

question 34

Multiple Choice

If the seller of good X raises the price of good X, it follows that the total revenue of good X will __________, if demand is __________.

• A)fall; inelastic
• B)rise; elastic
• C)fall; unit elastic
• D)fall; elastic

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Definitions:

Household

A person or group of people living together in a single living accommodation, sharing meals or living space, and may consist of a family or other socially cohesive unit.

Repeat Purchases

The act of buying a product or service again after the first purchase, indicating customer loyalty or satisfaction.

Social Responsibility Concept

The belief that businesses should contribute to the welfare of society and not be solely focused on maximizing profits.

Profit Motive

The fundamental purpose of businesses to earn profits, driving their operational and strategic decisions.