If Total Revenue Falls as a Result of a Decrease

question 165

Multiple Choice

If total revenue falls as a result of a decrease in the price of a given good, it follows that demand is

• A)perfectly elastic.
• B)inelastic.
• C)unit elastic.
• D)elastic.

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Definitions:

Dictator Game

An experimental economics scenario where one player, the "dictator," determines how to split an endowment between themselves and another player.

Ultimatum Game

A game in economic experiments where two players decide how to divide a sum of money; one proposes the split, and the other can accept or reject it.

Behavioral Economists

Scientists focusing on the role of psychological, cognitive, emotional, cultural, and social elements in shaping the economic decisions of individuals and institutions.

Narrowly Self-Interested

Describes behavior focused on individual gain often at the expense of others' well-being or societal welfare.